Why Meta Platforms Looks Poised For A Rally On Earnings

Meta Platforms Inc FB is gearing up to report its four-quarter earnings Wednesday after the closing bell. This will be the first report since the company changed its name from Facebook.

On CNBC's "Options Action," Mike Khouw of Optimize Advisors said that calls outpaced puts by around 2:1.

See Also: Here's Why Stifel Is Bullish On Meta

The options market is implying a move of around 6% by the end of the week, which is in line with how the stock has performed over the past eight reported quarters, he added.

There were buyers of more than 13,000 weekly 340 strike calls, for an average price of $1.38 per contract, Khouw mentioned. Buyers of these contracts are betting that the stock will rise at least 7% by the end of the week.