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How to use combo options to trade earnings season?

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Combo options are option trades constructed from multiple contracts of differing options. The combinations enable more precise risk management techniques, offer the potential for higher returns, and reduce the margin requirement. In the upcoming earnings season, what combo options are recommended to use? As the broader market $S&P 500(.SPX)$ already dips too much, the probability of the plunge in this earnings season get lower. The bullish combo strategy can offer insurance on top of “sell put“. 1) Bull Put Spread Imagine you believe a stock won’t go down too much. In a bull put spread, you: Sell a Put Option: You sell a put option because you think the stock won't fall below that price. Buy Another Put Option: You also buy another put option with a lower price, acting as insurance. Maximum Loss: Limited to the difference between the two strike prices minus the premium you received. Maximum Profit: You earn the difference in the premiums of the two put options if the stock closes above the higher strike price at expiration. 2) Bull Call Spread Picture this: you expect a stock to rise, but not significantly. In a bull call spread, you: Buy a Call Option: You buy a call option with a lower strike price, indicating your expectation of the stock's rise. Sell Another Call Option: You sell another call option with a higher strike price. Maximum Profit: It is limited to the difference between the strike prices. If the stock rises above the higher strike, your profit is capped. Maximum Loss: If the stock falls below the lower strike, your potential loss is limited to the premium. However, for stocks with high volatility $Netflix(NFLX)$ $Meta Platforms, Inc.(META)$ $Tesla Motors(TSLA)$ on the earnings day, straddle and strangle are better choices. Options Straddle vs Strangle: How Do They Differ? - projectfinance How do combo options work? What combo options do you recommend to trade upcoming earnings season? Leave your comments and repost in our topic to win tiger coins!
How to use combo options to trade earnings season?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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