Deere & Co (DE) is a manufacturer of heavy machinery and vehicles for agricultural, forestry and construction applications. The stock is currently trading around $91.20 in a 52 week range of $78.88-$98.23. DE has performed relatively well this year with shares rallying 3.2% year to date. Despite the stocks relatively strong performance this year its chart and historical performance record are indicating it might be a good short ahead of earnings before the bell tomorrow.

DE is set to report earnings tomorrow before the opening bell and the stock record on earnings day is extremely bearish. Over the past 12 quarters the stock sold off on earnings day 9 times with an average move of 2.64%. Currently the options market is implying a move of around $3.00 (3.3% ) higher or lower by tomorrow’s close. The stock is selling off today and is now below the Ichimoku Cloud on the daily bar. With a weakened chart setups and a dismal performance record DE is appearing to set up well for a short.

Using the implied move I can calculate a downside target for DE by tomorrow’s close. I will look to set up an options strategy targeting a move to $88.20 by tomorrow’s close. With this target in place I can now set up an options trade.

Possible Trade: Buying the DE Aug 90-88 Put Spreads for $0.50
Risk: $50 per 1 lot
Reward: $150 per 1 lot
Breakeven: $89.50

Salesforce.com Inc. (CRM) is a cloud computing service that provides customers with customer relationship management platforms. The company’s stock is currently trading around $69.70 in a 52 week range of $51.04-$78.46. The stock has been performing well this year with shares rallying 17.64% year to date. Despite the stocks relatively strong performance through the year CRM is selling off hard ahead of earnings set to be released after the bell today.

The stock has a mixed performance record on earnings. Over the past 12 quarters the stock has rallied 6 times and sold off 6 times with an average move of 6.95%. With stock at current levels options markets are implying that the stock can move higher or lower by $5.35 by tomorrow’s expiration. Although the historical performance of the stock is mixed the chart is starting to look much weaker in CRM. The stock is lower by nearly 3.5% today and is breaking out of value for the month. The stock is now also firmly below the Ichimoku Cloud indicating a move into bearish territory. With a mixed performance history and a weak chat I believe CRM is setting up well for a short position via options.

Using the move implied by the options market I can calculate a downside target of $64.35. I can use the downside target to set up a trade.

Possible trade: Buying the CRM Aug 66-64 Put Spreads for $0.50
Risk: $50 per 1 lot
Reward: $150 per 1 lot
Breakeven: $65.50

Xilinx, Inc (XLNX) is a semiconductor and technology company that develops programmable devices. The company’s stock is currently trading around $42.50 in a 52 week range of $36.24-$48.73. The stock has been relatively weak on the year with shares falling 2.17% year to date. The stock has been on a bit of a rebound however with shares rallying after making recent lows post-earnings. Despite the slight recovery in XLNX options traders are putting on some large bearish bets in the name during todays session.

Earlier this morning a trader bought 8,124 XLNX Sep 40 puts for $0.44 while the stock was trading at $42.74. The stock sold off after the order hit and over 20,000 contracts have now traded on that line. The stock moved to session lows after the order hit the tape and as the stock made lows these puts traded as high as $0.60 on the session making this a very profitable trade. Although the stock is off of session lows these puts are still trading near the trader’s entry price. The stock is below the Ichimoku Cloud on the daily bar so this could still represent a decent short opportunity.

Trade: A trader bought 8,124 XLNX Sep 40 puts for $0.44
Risk: $44 per 1 lot
Breakeven: $39.56

I bought these puts for $0.48 on average and took a profit target at $0.60. Including the other blocks that traded on this line XLNX has traded 4.5 times its average daily options volume today meaning this order is very significant.

Lowe’s Companies, Inc (LOW) is a home improvement retailer with over 1,800 locations in North America. The company’s stock is currently trading around $73.22 in a 52 week range of $49.70-$76.25. The stock is seeing a nice move higher today in sympathy with the move higher in Home Depot (HD) after earnings were reported earlier today. LOW has been relatively strong this year with shares rallying just over 6% year to date. The company is set to report their most recent quarterly earnings tomorrow morning before the bell. Based on the strong historical performance of the stock and the solid technical setup it seems like LOW is setting up well for a long ahead of earnings.

LOW stock has rallied on earnings day 7 of the past 12 quarters with an average move of 4.23%. More importantly, the stock has rallied from earnings day through the nearest options expiration with an average move of 4.64%. The stock is also looking strong on a chart. LOW is trading well above the Ichimoku Cloud and both its 9 and 26 period moving averages. With such strong historical movement and a good looking chart I want to set up a long position in LOW. Market makers are currently implying a move of around $2.70 in LOW by this Friday’s expiration so I can use this to calculate an upside target.

With LOW trading around $73.22 I will calculate an upside target of $75.92 and set up a trade.

Possible Trade: Selling the LOW Aug 75-72.5 Put Spreads for $1.40
Risk: $110 per 1 lot
Reward: $140 per 1 lot
Breakeven: $73.60

Home Depot (HD) is a retailer of home improvement products and services with operations in North America and U.S. territories. The company operates nearly 2,300 stores in those regions. Home Depot’s stock is currently trading around $120.40 in a 52 week range of $82.85-$120.75. The stock has been strong this year, rallying 14.67% year to date. Home Depot is set to report their most recent quarterly earnings tomorrow before the market open and all data points are signaling for a potential bullish trade signal ahead of the report.

HD has rallied 9 of the past 12 quarters on earnings day with an average move of 3.28%. The stock has also rallied from earnings day through the nearest options expiration 9 of the past 12 quarters. The stock is also looking very strong on a chart. Currently HD shares are trading well above the Ichimoku Cloud and both the 9 and 26 period moving averages. With the options market implying a move of around $4.10 by this Fridays close I can look for an options spread that gets me long HD with a maximum profit at the implied upside target of $124.50.

Possible Trade: Buying the HD Aug 123-125 Call Spreads for $0.50
Risk: $50 per 1 lot
Reward: $150 per 1 lot
Breakeven: $123.50

Tumi Holdings, Inc. (TUMI) offers consumers a range of travel and business products and accessories. The company’s stock is currently trading around $20.70 in a 52 week range of $18.29-$25.47. The stock has been underperforming the market this year falling 12.77% year to date. The past 5 days have seen a bit of a rebound in shares however. The stock has rallied over 4.2% over the past 5 days and is seeing another pop today of 2.32%. Despite the more bearish longer term price action in TUMI, options traders are betting on a continued move higher through the end of the year.

Earlier today a trader bought 1,933 of the TUMI Nov 22.5 Calls for $0.90 when the stock was trading at $20.57. The stock rallied after the order hit the tape and this block represents orderflow 8.6 times the average daily options volume in TUMI. Nearly 2,500 contracts have traded on that line now and stock has traded as high as $20.72 on the session. These options have not managed to trade higher on the day but this is very unusual options activity in TUMI. This will now create the largest line of open interest in TUMI Nov options and this trader is likely expecting the stock to continue its recovery after rallying on earnings earlier this month. With options still trading at $0.90 this trade could represent an opportunity to get long TUMI on institutional orderflow.

Trade: A trader bought 1,933 TUMI Nov 22.5 Calls for $0.90
Risk: $90 per 1 lot
Reward: Unlimited
Breakeven: $23.40

Monster Beverage Corporation (MNST) is engaged in the creation, design, distribution and selling of monster products including energy drinks, sporting events, Monster TV and Monster Music. The stock is currently trading around $147.72 at the upper end of its 52 week range of $64.27-$155.83. The stock has been out performing the market this year rallying 16.3% year to date. MNST is scheduled to report earnings after the closing bell today, and the stock is down huge, $6.28 or 4.08%, on the session ahead of the close.

Over the past 11 quarters MNST has rallied on earnings day 6 times with an average move of 5.67%. The stock appears bullish on a chart going into the release having traded above the Ichimoku Cloud since July, but is dropping huge over the past week on the daily bars. Over the past 11 quarters MNST has rallied on earnings day to the nearest expiration 4 times with an average move of 4.99%. Investors have extremely high expectations that the energy-drink giant will be able to continue the impressive run of fast-paced growth. With the stock trading at a bearish trend, okay earnings history, extremely high expectations and big money getting short according to Alpha Tracker it is hard to justify anything but a short position in MNST.

The options market is currently implying a move of around $12.9 or 8.8% in MNST by the end of this week giving us targets of $134.82 and $160.62.

Trade: Buy this week’s 138-136 Vertical put spread for $0.50
Risk: $50 per lot
Reward: $150 per lot
Break Even: $137.50

NVIDIA Corporation (NVDA) is engaged in visual computing, enabling individuals to interact with digital ideas, data and entertainment of branded products and services offering processors to original equipment manufacturers. The stock is currently trading around $20.33 at the middle end of its 52 week range of $16.77-$23.60. The stock has been performing inline with the market this year rallying 1.7% year to date. NVDA is scheduled to report earnings after the closing bell today, and the stock is down $0.25 or 1.21% on the session ahead of the close.

Over the past 11 quarters NVDA has rallied on earnings day 7 times with an average move of 4.49%. The stock appears slightly bullish on a chart going into the release having traded below the Ichimoku Cloud since July, but rising up to the cloud on the daily bars. Over the past 11 quarters NVDA has rallied on earnings day to the nearest expiration 7 times with an average move of 4.92%. Investors are mainly focused upon the newly announced acquisition of TransGaming Inc.’s proprietary cross-platform portability technology to expand the gaming sector of the company. The company has also experienced increasing revenue, but not enough to keep up with the consensus mark. With the stock trading below the cloud, great earnings history and mixed news it is hard to justify anything but a long or short position in NVDA.

The options market is currently implying a move of around $1.53 or 7.5% in NVDA by the end of this week giving us targets of $18.80 and $21.86.

Trade: Sell this week’s 19-20.5-22-20.5 Iron Butterfly for $0.98
Risk: $52 per lot
Reward: $98 per lot
Break Even: $19.52 and $21.48

Tesla Motors Inc. (TSLA) designs, develops, manufactures and sells electric vehicles, electric vehicle power train components and stationary energy storage systems. The stock is currently trading around $266.10 at the upper end of its 52 week range of $181.40-$291.42. The stock has been out performing the market this year rallying 19.63% year to date. TSLA is scheduled to report earnings after the closing bell today, and the stock is down $0.18 or 0.07% on the session ahead of the close.

Over the past 11 quarters TSLA has rallied on earnings day 6 times with an average move of 8.71%. The stock appears very bullish on a chart going into the release having traded above the Ichimoku Cloud since mid April on the daily bars. Over the past 11 quarters TSLA has rallied on earnings day to the nearest expiration 7 times with an average move of 10.09%. Investors are mainly focused on updates on the new Model X’s time line plays out. The investors are overly bearish predicting a 60 cent loss. With the stock trading above the cloud, great earnings history and a new car in the lineup it is hard to justify anything but a long position in TSLA.

The options market is currently implying a move of around $21.30 or 8% in TSLA by the end of this week giving us targets of $244.80 and $287.40.

Trade: Buy this week’s 282.5-285 Vertical call spread for $0.60
Risk: $60 per lot
Reward: $190 per lot
Break Even: $283.10

Keurig Green Mountain Inc. (GMCR) is a specialty coffee and coffeemaker business in the United States and Canada selling Keurig Single Cup Brewers and Arabica bean coffees, including Fair Trade Certified, certified organic and flavored. The stock is currently trading around $75.82 at the lower end of its 52 week range of $68.72-$158.87. The stock has been under performing the market this year falling 42.74% year to date. GMCR is scheduled to report earnings after the closing bell today, and the stock is down $0.77 or 1.01% on the session ahead of the close.

Over the past 8 quarters GMCR has rallied on earnings day 3 times with an average move of 10.0%. The stock appears very bearish on a chart going into the release having traded below the Ichimoku Cloud for the past 6 months on the daily bars. Investors are mainly hoping to see higher sales in the hyped Keurig 2.0 brewer. The pods consumers have been using for so long are not compatible with this brewer and allows only for license K-Cup pods. With the stock trading below the cloud, bad earnings history and poor sales on the newest brewer it is hard to justify anything but a short position in GMCR.

The options market is currently implying a move of around $7.17 or 9.5% in GMCR by the end of this week giving us targets of $68.65 and $82.99.

Trade: Buy this week’s 70-69 Vertical put spread for $0.24
Risk: $24 per lot
Reward: $76 per lot
Break Even: $69.76