Here’s a look at some of the companies that will reporting earnings this week:

Abercrombie & Fitch (ANF, $54.11, up $3.73) announces earnings Friday. The stock fell nearly 10% when the company said same-store sales were down 7% last week. The stock rebounded on Monday after hitting a low of $48.21 on Friday. The August 55 calls (ANFHK, $1.55, up $1.10) were up 244% yesterday. This 55 strike price could be the battle line between the bulls and bears and the options expire this Friday. Too risky to join that trade battle.

JCPenney (JCP, $37.50, up $1.75) is scheduled to report earnings on Friday. The company also announced weaker-than-expected July sales but raised its quarterly earnings guidance on Thursday. JC now expects earnings of $0.50-$0.52 a share, versus its previous guidance of $0.38 a share. The August 40 calls (JCPHH, $0.45, up $0.30) traded over 8,000 contracts yesterday. Maybe there was a lot of selling of these calls because I don’t think JC has the energy to make a push to $40.

Kohl’s (KSS, $51.00, up $4.13) is expected to report earnings on Thursday. Yesterday’s 9% move was impressive. A favorite back-to-school play every year around this time. I’ve never trusted Kohl’s when it comes to predicting their earnings and I have no reason to start. I just hate the way this stock trades.

Macy’s (M, $21.65, up $0.92) reports Wednesday before the bell. The company did not give a 2Q outlook but Wall Street is looking for $0.19 a share on revenues of $5.8 billion. I’ve never followed Macy’s and don’t plan to start now.

TJX Companies (TJX, $37.00, up $0.13) will announce earnings this morning before the bell. The retailer recently raised its 2Q guidance to $0.46-$0.47 a share. TJX said July same-store sales were up 3%. The stock actually set a 52-week high of $37.52 on Monday.

Wal-Mart Stores (WMT, $58.56, up $0.70) reports earnings on Thursday. Wall Street is expecting a profit of $0.83 a share on sales of $102 billion. I’ve mentioned Wal-Mart numerous times here and how it always has trouble holding $60. The stock hit a 52-week high of $61 last Wednesday and quickly gave back those gains by the end of the week. The August 60 calls (WMTHL, $0.33, up $0.11) were heavily traded yesterday and if the stock can make another push above $60, these calls should do well. Be careful though, the $60 mark is acting like quicksand and the trade should be closed before Thursday.

Rick Rouse
Rick@OptionsMentoring.com