 Bloomberg -- Trading ideas are stacking up for whats set to be a difficult second-quarter earnings season featuring a wide variation in performance due to the coronavirus pandemic.Stocks have surged from Marchs lows despite the bleakest profit outlook since the global financial crisis, with SP; 500 earnings expected to drop about 44. Megacap technology firms led the stimulus-fueled rally and a key debate is whether they will keep that role as the earnings picture becomes clearer.For all but a fortunate few -- notably among the FAANGs -- the earnings numbers will be abysmal, Tan Kai Xian, a statistician and U.S. analyst at Gavekal Research, wrote in a note, using a common acronym for big tech stocks. But theres a reasonable prospect of brighter estimates and positive second-half surprises, which would support stock prices, he said.Heres a rundown of some recent thinking going into the earnings season:Performance ReversalJulian Emanuel, head of equity and derivatives strategy at BTIG LLC, raises the prospect of leaders and laggards swapping roles, after stocks such as eBay Inc. and Amazon.com Inc. rallied 20 or more from a June 8 peak in the SP; 500, while companies like JPMorgan Chase Co. and General Motors Co. fell more than 10 over the period.We view earnings season as a potential catalyst for performance reversion, he wrote in a note, while also adding that if 2020 has taught us anything, it is that anything can happen -- and probably will.Tech Risk?Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management, flags the possibility that disappointing earnings and guidance from technology companies may be an underappreciated risk. Investors should consider adding gold, corporate credit and non-U.S. stocks to portfolios that are overweight the SP; 500, she wrote in a note.OptionsAmy Wu Silverman, derivatives strategist at RBC Capital Markets, sees an opportunity for investors to use the current high premiums in call options in their favor. Specifically, she recommends call spreads on Amazon and Netflix Inc. -- a strategy that involves both buying and selling the bullish options but with different strike prices -- as a way to profit from further modest gains in their stock prices.Long FinancialsEvercore ISI strategists led by Dennis DeBusschere have recommended going long financials into the earnings season because theres upside potential for a battered-down sector thats priced in negative headlines already.IndustrialsStuart Kaiser, head of equity derivatives research at UBS Securities LLC, recommends call options on the Industrial Select Sector SPDR Fund to position for upside in earnings, as the firms big data analysis shows revenue for industrials above consensus heading into the reporting season.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.2020 Bloomberg L.P. 