Do Options Traders See Upside In The iPhone?

Do options traders see upside in Verizon's potential deal to carry the iPhone ?

Apple iPhone 4
Emmanuel Dunand | AFP | Getty Images
Apple iPhone 4

If today's price action was any indication, the answer is yes.

There were big buyers of the Verizon Jan '11 37-strike calls, with investors wagering that Verizon stock will close above $37.25 by the third week in January.

Interestingly, the January expiration does not capture earnings, so the majority of that call buying likely came from traders who see short-term gains in tomorrow's announcement.

However, not everyone is buying the optimism.

"Everyone knows this, it's already in the stock," said Options Action contributor Dan Nathan.

"Verizon already has a pretty substantial lineup of smart phones. Whatever the benefits are, at the end of the day it's probably priced in," Nathan added.

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

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