earnings season is in full swing with onethird of the sp 500 and dow jones industrial average set to report this week microsoft boeing and mcdonalds are just a few of the 166 companies on deck in an interview with cnbcs trading nation danielle shay director of options at simpler trading flagged caterpillar which reports on thursday pointing to prior data she said the stock has high implied volatility which benefits options traders historically it moves 1 to 3 on earnings and it actually usually pulls back a little bit but im noticing in the options market because of the implied volatility traders could actually come right in and sell premium right at the money for a really good risk reward she said additionally the construction and energy industries are heating up boosted by prospects around president joe bidens recently unveiled 2 trillion infrastructure plan and a rebound in oil prices shay said overall i think that caterpillar is really strong she said adding that the stock will likely see a small pullback on earnings which would make for a great place to add some additional shares if you dont want to trade options craig johnson senior technical research analyst at piper sandler has facebook on his radar headed into the big week if you go back and you look at facebook theyve only missed three times going all the way back to 2012 he said in the same trading nation interview on friday zooming into the chart johnson directed attention to how the stock had been consolidating sideways since september but has now formed a bullish flag indicating that it may be ready for a breakout