Amazon.com, Inc. (NASDAQ:AMZN) is set to report its fourth-quarter results after markets close Thursday. The company’s stock has lost close to 12% year to date.
On CNBC's "Options Action," Tony Zhang said the market is implying around a 4.8% move on Amazon earnings, versus the 4.2% move over the past eight reported quarters.
“But one trader is betting that that downside could be more than double that,” he added.
See Also: Why This Investor Thinks Amazon's Stock Is Well Positioned Ahead Of Earnings
There was a buyer of 449 February 11 weekly 2800/2700 put spreads, at an average price of $14 per contract, Zhang mentioned.
“That’s risking about $628,000 in premium to potentially make $3.8 million if Amazon drops more than 10% by Friday next week,” he added.
Amazon's stock is down about 6% at $2,832.81, following Meta's (NASDAQ:FB) big post-earnings plunge.
