Earnings season officially kicks off this week with 32 S&P 500 companies and six components reporting third-quarter results. And while the overall earnings picture is expected to be bleak, some savvy traders are betting on big moves out of some of the names.
Curiously, while banks may grab the lion's share of investors' attention, options traders don't expect fireworks when they release earnings this week.
"Interestingly, all the financials are implying a below-average move," Mike Khouw said Friday on CNBC's "Options Action." Bank of America, which reports on Wednesday before the opening bell, is expected to move just 3.15 percent versus its historical average of 4.11 percent. While Wells Fargo, also reporting Wednesday morning, is projected to see a 2.05 percent shift in either direction, more than 1 percent lower than its average of 3.4 percent.
Options traders use at-the-money put and call strike prices to estimate how much a stock will move.
Instead, the focus could shift to tech, as current option prices for Intel and Netflix are implying the largest moves this week.
Intel, which reports Tuesday after the bell, could see a move of nearly 5 percent in either direction; that's considerably higher than its historical average of 3 percent. Meanwhile, options traders are betting Netflix could move as much as 14.75 percent in either direction when it reports Wednesday. On a typical earnings report, Netflix shares move on average 12.92 percent.
"[Netflix] is a name that really whips around," added Khouw, co-founder of Optimize Advisors and a CNBC contributor. Shares of Netflix are up more than 130 percent year to date, and a 14 percent rally in the stock would put it at its all-time high of $129.29 hit in early August.
Analysts surveyed by FactSet expect Netflix to earn 7 cents per share on $1.75 billion in revenue for its third quarter.