Options: Careful Trade in Charles Schwab

By Jud Pyle, CFA, chief investment strategist for the Options News Network

Financial services provider Charles Schwab(SCHW Quote) is scheduled to announce second-quarter earnings the week of July 13.

No firm date has been set but it's likely that the report will hit the Street on July 16 or 17, putting the announcement prior to the July expiration. Today, at least one investor boosted call volume by buying July calls and selling August calls.

Amid a slow options trading day today, we noticed an investor bought approximately 10,000 July 18 calls and simultaneously sold 10,000 Aug. 18 calls with the stock at $17.03. ...