UNP hit a resistance off the Weekly + Monthly levels today with earnings coming up in exactly one week. Volatility is above average which makes buying vertical spreads attractive. I'm taking the August 90/87.5 Put spreads which were selling for 0.32. Max profit on these is 2.50 which would happen in a massive move. Getting them cheap will let me go profitable with a 5% earnings move with a 3:1 reward/risk if the options expire in August at or below 88.70.
Earnings at around expectation; price moving in favor of the trade, up 100% or 1:1 Reward/Risk