To receive further updates on this Express, Inc. (NYSE:EXPR) trade as well as an alert when it’s time to take profits, sign up for a risk-free trial of Maximum Options today.

In general, I’m optimistic on the retailers because they are getting more efficient. When they’re down and out, they’re able to adjust, normally. If they don’t adjust, they’re not going to be there.

Express, Inc. (NYSE:EXPR) is a retail firm that showed disappointing earnings results. I think its decline was overdone, and I’m looking for shares to at least recover to $13, so here’s my long-shot position to take advantage of that situation — a call debit spread:

Using a spread order, buy to open the EXPR Apr. 21st $12 call and sell to open the EXPR Apr. 21st $15 call.

A debit spread is simply a way to lower the cost of buying options, as the option that you sell to open (short) helps offset the cost of the option that you buy to open. Therefore, this call debit spread is a way to lower the cost of buying bullish call options. Many brokers will require the use of margin and/or a set amount of reserved capital to execute a debit spread; contact your broker directly for specific requirements.

Ken Trester is editor of the popular Maximum Options program. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990.