This article first appeared on GuruFocus.

Apple (NASDAQ:AAPL) is all set to report earnings as options markets pointed to a sharp post results move, with traders positioning for volatility into Thursday’s report.

Options pricing suggests Apple stock could move about 4% in either direction by the end of the week. From the prior close near $256, that would imply a range roughly between $247 and $266. Shares remain about 11% below early December highs reached on optimism around global smartphone demand.

• Warning! GuruFocus has detected 3 Warning Sign with META.

• Is AAPL fairly valued? Test your thesis with our free DCF calculator.

Apple is set to report fiscal first quarter results after the closing bell Thursday. Wall Street expects record holiday quarter revenue, reflecting seasonal strength and steady iPhone demand.

Analysts forecast revenue of about $138.1 billion and earnings per share of $2.67, each up roughly 11% from a year earlier. Apple topped estimates in its previous report in October.

Some analysts, including those at JPMorgan, UBS, and Morgan Stanley, have flagged memory chip shortages as a potential headwind to margins. They see the impact as manageable but note cost pressures could temper enthusiasm even if iPhone sales come in strong.