Tupperware (TUP) - Get Report announced earnings before the open on Wednesday, and its stock jumped more $4.61, or 8.3%, on the news.

This sort of price action in the wake of an earnings report tends to be exaggerated, and a stock will usually correct in the other direction soon afterward. The chart below reveals many indicators pointing to a bearish turn in price in coming sessions.

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A lot went on at the same time here, all bearish. The three-session bearish squeeze alert is an unusual signal but a strong one. Right after earnings, Tupperware's stock price gapped higher. This happened at the same time as trading volume spiked and the relative strength index moved into overbought territory. This was the first time in the past six months that the RSI has been overbought.

All of these signals, along with the big 4.61-point rally point to a likely bearish correction in coming sessions.

Based on closing prices on Wednesday, purchasing the November 60 put option looks attractive. It closed at an ask of 2.05, so with estimated trading fees, it will cost about $216.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

Besides blogging at TheStreet.com, Michael Thomsett also blogs at theCBOE Options Huband several other sites. He is author of 11 options books and has been trading options for 35 years.  Thomsett Publishing Website