Ahead of Tuesday's January sales report that is expected to be positive here is a simple low risk options strategy.
Friday, Jan. 6: Sell OTM January put spread. For example Jan. 60/55. With IV on puts in the 40s, and 16 days to expiration this trade can generate 80%+ return on margin if expired worthless at expiration.
Monday. Jan.9. With only 13 days to expiration left there are two action plans:
1. Shares are higher - close the put spread at a profit.
2. Shares are lower - use credit from Friday's put spread to buy Jan. calls and subsequently manage positions based on the Tuesday's sales results.