koolgal
05-25 14:41
🌟🌟🌟A good options strategy for $Micron Technology(MU)$ is a Bull Call Spread.

Instead of buying a risky straight long call that can easily get crushed by post earnings volatility, a Bull Call Spread allows you to drastically lower your upfront cost while completely neutralising the dangerous impact of an IV Crush.

Set Up:

Buy one call option closer to the stock price and sell another call option at a higher strike price with the same expiration date.

While the spread impact advantage optimises your short term tactical trades, never forget that options still carry an expiration deadline.

@Tiger_comments @TigerStars @Tiger_SG

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Comments

  • FrankRebecca
    05-25 17:32
    FrankRebecca
    IV crush is brutal lol, spread makes way more sense. You doing this only for earnings?
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