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Pro Analysis

Bet on TJX, these other retail stocks into earnings: Options trader

A woman shops for coats at a Burlington Coat Factory store in White Plains, New York.
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A woman shops for coats at a Burlington Coat Factory store in White Plains, New York.

Earnings season can be one of the most volatile times for short-term traders and this one will be no exception with many retail stocks set to report over the next two weeks.

Even though the industry has been shaken by Amazon's continued ascent this year, there are some companies that can still do well, according to a small Wall Street firm.

With this in mind, MKM Partners gave its best short-term earnings trade ideas in a note to clients Monday.

MKM retail analyst Roxanne Meyer "thinks off-price retailing remains one of the few growth segments within the sector," wrote derivatives strategist Jim Strugger. "She thinks the companies continue to gain share from the department stores and does not see evidence of pressure from Amazon.com, Inc."

Here are three companies the team recommends and the specific options trade to use to maximize your returns.