The options market is expecting the three tech giants, which make up 21 percent of the Nasdaq 100, to move a combined 19 percent in either direction by Friday. That's a potential plus or minus $67 billion move in market cap. Options traders use at-the-money put and call strike prices to estimate how much a stock will move.
According to one technician, there's one name in particular that stands out as the clear winner: Microsoft. "It looks to my eye that Microsoft is setting up quite well for a breakout," Carter Worth said Friday on CNBC's "Options Action."
Looking at a longer-term chart of Microsoft, Worth noted that the stock has been consolidating. "We have this formation of tight trading, and the presumption is we are going to get somewhat of a [move higher]," added Cornerstone Macro's head of technical analysis. For Worth, the catalyst for the next leg higher could be a positive earnings event.
Worth pointed to the relative outperformance of rival Intel for additional perspective. "The correlation between Microsoft and Intel is quite high," he said. The company reported better-than-expected earnings and revenue last week, and is now up more than 34 percent from its Aug. 24 low.
Also factoring into Worth's positive thesis is Microsoft's 3 percent yield. As he believes the company's strong technicals coupled with the high yield makes it a "heads you win, tails you win kind of setup."
Microsoft is set to release its fiscal 2016 first-quarter earnings report on Thursday. Analysts polled by FactSet are expecting the company to earn 58 cents per share on $20.75 billion in revenue.