If you own any of these, consider buying a protective put option to offset a post-earnings drop. If you don't own them, consider shorting or buying a put to take advantage of the expected downside move.

Then we'll look at a stock that the Street is bearish on that could be poised for a pop higher.

Not So Hot: Hewlett-Packard (HPQ)

Hewlett-Packard (HPQ) hasn't done too well after its past three earnings reports. In fact, the shares have sunk about 6% on average after each report. But the Street doesn't seem to mind. Sixteen of 21 covering analysts rate the stock a "buy," leaving little room for upgrades. And options players have been pumping up the call volume relative to puts, another sign of optimism.

With the shares hitting resistance at the $44 level, HPQ is showing all the signs of a stock looking to top out. The company reports earnings on Aug. 18.

Not So Hot: GameStop (GME)

GameStop (GME) is a Wall Street favorite. How much do analysts love GME? How about all 13 covering brokerages rating the stock a "buy"? And 10 of those are "strong buys." It's hard to get any more bullish than that. The put/call ratio is within the lower 30% of all readings of the past year, signifying optimism among options players. 

Technically, the shares have run into a wall at their 100-day and 200-day moving averages near the 25 level. Such resistance coupled with over-the-top optimism is a dangerous mixture that is best avoided or played on the downside. The company reports earnings on Aug. 20.

Not So Hot: Deere & Co. (DE)

The best known agricultural machinery company in the world is Deere & Co. (DE) — its signature green and yellow hardware is a familiar site on farms, worksites and front yards. The company has seen a severe slowdown in revenue and earnings during the past year as the global economic slowdown has taken its toll on the company.

While analysts are expecting a drop in the upcoming report, slated to hit the wire on Aug. 19, sentiment toward DE appears to be tilted to the optimistic side. Recent activity in the options market and other sentiment indicators suggests that DE is being priced for a positive earnings surprise. With the stock topping out technically, heightened expectations such as those displayed toward DE more often than not result in a "sell the news" reaction to the earnings announcement.

Hot Sock: Sears Holdings Corp. (SHLD)

Talk about a stock flying under the radar. Sears Holdings Corp. (SHLD) is covered by just five analysts, and all of them consider the stock a "sell." In fact, four of the five rate the shares a "strong sell." But that means the stock is ripe for upgrades.

Short interest on the stock is very high, raising the possibility of a short squeeze that could boost the share price. Given how the stock has done following the past three earnings reports (up an average of 16% in two weeks), this extreme pessimism could unwind into some serious buying pressure — and some serious profits for traders who purchase SHLD call options ahead of earnings. The company reports on Aug. 20.

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