The Long and Short of Bed Bath & Beyond (BBBY)

Shares of Bed Bath & Beyond Inc. BBBY are higher on the session by 0.31%, currently trading at $42.09. The company is schedule to report earnings later today, after the closing bell. For a full earnings preview, including technical breakdown, earnings/guidance estimates, and volatility metrics, please click here. Playing stocks into earnings is often considered flat out gambling, but if done right, traders can take advantage of near-term discrepancies in price to reap large rewards. Feeling lucky? Here are few trade setups to voice your bear or bull opinion… Bulls: Bulls will see historical support below $35.00 and resistance at $45.00. They will also cite the fact that the stock recently popped above the 50-day moving average. One trade a bull could execute would be to buy the October $42/46 call spread for a net debit of $1.14. Max gain would be taken above $45, where the trade would be worth a $2.86 gain or +250%. Bears: Bears are looking at the same support and resistance levels, but will also cite the huge run the stock has had over the past year and a half. Bears could look to sell the October $45 call for $0.46 to buy the October $41 put for $1.10. Net debit on the trade is $0.64 and is essentially a bet that shares drift lower, toward the $35.00 mark. Wondering how Benzinga's Chief Options Strategist is playing Bed Bath & Beyond? Click here to find out…he recently called Best Buy's better-than-expected earnings and made subscribers 2,300% on their options position. No…that's not a typo.