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Here's what to expect from bank earnings this week

Financials are in focus this week as three major banks gear up to report earnings — but traders aren't expecting nearly as many fireworks as we may have seen in the last few quarters.

The options market is implying a move of around 3.1 percent in either direction for shares of Citigroup. That's slightly less than the stock's average one-day move of 3.5 percent. Shares of Citigroup have rallied 16 percent in the last three months.

JPMorgan is also expected to see a less-than-average move when it reports earnings Friday morning. Options traders are anticipating a 2.4 percent move up or down versus its average of 2.7 percent.

Even embattled lending giant Wells Fargo could see less volatile post-earnings trade. The options market is implying a mere 2 percent move compared to its average of 3.5 percent in either direction. However, it does appear at least one trader is expecting that move to be lower.

In a sizable trade Monday, someone purchased 30,000 of the November 40-strike puts for 21 cents each. This is a bearish bet that Wells Fargo could fall below $39.80 in a little more than a month.

Citigroup, JPMorgan and Wells Fargo make up nearly 25 percent of the XLF financial ETF and despite more muted expectations for the third quarter, if all three of the moves were to come to fruition it could represent a $16 billion trade for the financial sector.

Financials are the second-best-performing sector over the last three months, up more than 4 percent.

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  • Melissa Lee

    Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

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