Options Trades for the Week of July 27th...

With all of the earnings coming out next week, here's a look at how to catch some potential volatility...

   1) TWTR reports earnings on Tuesday, the 28th, after the market close. Should the much maligned micro-blogging site have a good quarter, its stock could see some nice upside. The trade:

     Short 1 July 31st $37.5 call for $1.8
     Long 3 July 31st $43 calls for $0.6

     The trade gives you +12 delta points for every -1:3 portion you put on.
     The breakeven price is roughly $46
     If TWTR finishes next week below $37.5, the options expire worthless and the credits and debits completely cancel each other out for 0 loss.

   2) FEYE reports earnings after the bell on Thursday, the 30th. The stock has performed well of late fueled by data security concerns. However, should the company's earnings fail to inspire future price growth, the stock could take a hit. Here's the trade:

     Short 1 August 7th $45 put for $2.39
     Long 3 August 7th $40 puts for $0.75

     The trade gives -11 delta points for every -1:3 portion
     The breakeven price on the downside is roughly $37.75
     If FEYE finishes above $45 on August 7th, the trade will actually give a small credit of +$14 for every portion of the trade outlined above.

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