Whole Foods is sitting on a massive support level right above the gap level of $50 last year.
As the stock rises on earnings, call options are trading at two times normal volume.
Let's close our butterfly and open a position in April calls.
With earnings due tomorrow, we see three possible scenarios.
The stock is at a key technical level, and we suggest keeping the put protection.
Trading in call options is heavy, and two bullish trades stand out.
To define downside risk, consider buying these calls instead of going long the stock.
Ahead of the company's earnings report, put protection looks reasonably priced.
Here's a brief summary of our moves over the past week.
Ahead of earnings, a trader buys a bullish overwrite that has tight strike prices.