Using stock options to trade earning reports is a high risk proposition. Heading into earnings option prices will be elevated to account for the possibility of a large move after the company reports. If the company does not impress or disappoint, the stock could move sideways the next trading session and those elevated options will drop significantly in price. However if the stock makes a big move post earnings you stand to make a tidy profit assuming you positioned yourself for the move.
Here is the trade I am looking at heading into $GES earnings on Thursday. I am making this trade based on $GES chart and its recent break of a long downtrend. Support lies at the $27.50 level, I think a break out will lead to a price of $45 at some point this year.
Trade Idea: $GES - June $30.80 calls
They closed at $.93 would like to get them cheaper and would be happy with $.75-.80.
These options expire in a few weeks. I will be buying them tomorrow if I get my price.
Another way to trade $GES is to wait until after they report. If the earnings report is positive then trade for a continuation to the upside and a move ultimately up to $45 over the course of the year.
Trade Ideas: $GES - Sept. $32 calls
Post earnings, if the stock does not rocket higher these calls could drop to the $1 range and that is where you will find my limit order.