Different people react to earnings season differently. Some experience a quickening of pulse, a shortness of breath. Others keep an earnings scorecard next to their keyboards, gleefully recording the beats and misses. And still others look ahead, predict who will disappoint, and put on bearish trades. Friday's episode would put the "Options Action" traders in that third camp. Let's get to the bear calls on United Parcel Service and Amazon.
Let's start with the trade on UPS . Oppenheimer's Carter Worth looked at a few charts of United Parcel Service, and hated what he saw. Worth predicted that the stock is set for a drop to $65.
CRT Capital's Mike Khouw agreed with the bearishness, pointing out that all recent the data point toward weakness for the transportation sector. Despite this, UPS still looks quite expensive — Khouw pointed out that the stock trades at a premium to the market, even though that the company is not growing with any great speed.