Using a double calendar spread to profit from price movement in either direction after earnings announcement in 3 days time (18 July) for MMM.
These trades can be extremely profitable if one expects movement after earnings.
Selling both a Put and Call at high (pre-earnings IV) makes this option trade relatively cheap, since the purchase for the other Call and Puts are after earnings announcement with lower IV
Selling a Call with Strike $167 for 18th July
Selling a Put with Strike $145 for 18th July
Buying a Call with Strike $175 for 29 Aug
Buying a Put with Strike $140 fro 29 Aug
Total net debit and max loss $125 for 1 contract
Max profit $ 287
For more details on these type of Option trades you can search for Strategic Options Trader on Substack
These trades can be extremely profitable if one expects movement after earnings.
Selling both a Put and Call at high (pre-earnings IV) makes this option trade relatively cheap, since the purchase for the other Call and Puts are after earnings announcement with lower IV
Selling a Call with Strike $167 for 18th July
Selling a Put with Strike $145 for 18th July
Buying a Call with Strike $175 for 29 Aug
Buying a Put with Strike $140 fro 29 Aug
Total net debit and max loss $125 for 1 contract
Max profit $ 287
For more details on these type of Option trades you can search for Strategic Options Trader on Substack
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