All eyes will be on tech this week as many mega-cap names release earnings — and traders are expecting some hefty moves from the reports.
Apple kicks it off Tuesday when it is scheduled to report after the closing bell. The options market is implying a 4 percent move for the stock in either direction. That's less than the four-quarter average shift of about 5.5 percent.
Shares of the tech giant fell more than 1 percent Monday after BGC analyst Colin Gillis downgraded the stock to sell, citing concerns over the company's iPhone and management.
"I think more important than Apple is going to be what Alphabet, Facebook and Amazon say," Carter Worth told CNBC's "Options Action" on Friday. "A big hit or miss out of those other three I think will [move the market]," added Cornerstone Macro's head of technical analysis.
Facebook is scheduled to report its earnings on Wednesday afternoon. Traders are expecting the stock to see a nearly 7 percent move higher or lower. Shares of the social media giant are trading just under its all-time high hit last week.
Alphabet and Amazon are due to report Thursday after the bell. The options market is implying a nearly 5 percent move in either direction for Alphabet. Meanwhile, Amazon could see an 8 percent move higher or lower.
Together, these four stocks make up 30 percent of the Nasdaq 100. And if all the implied moves were to come to fruition, it could represent a nearly $100 billion shift in market cap.
Options traders calculate the implied move for equities by measuring a particular stock's so-called straddle — or at the money put and call. The amount of the straddle typically captures market makers' expectations for how much a stock is going to move.