as ive posted for last few weeks, i will be making a credit put spread entry this week prior to earnings. i currently still have diagonal spreads with a DITM call LEAP and short Apr 115 calls. Since i will hold the LEAP regardless of what happens with earnings i can treat the short 115 call as a hedge to any credit put spread. Right now im considering either the 105/110 credit put spread or the 100/105 to be entered day of earnings. i dont normally enter credit spreads ahead of earnings but having the short call premium as a hedge lets me do that. leaning towards the 100/105, but will see where stock is right before earnings.
Actions after earnings:
1. if stock moves down below 115, i keep all the short call premium and sell a short call for may. if below 105 then roll credit put spreads to may. 105 level is what id be shooting against for this month since 200day is there. that short call premium helps to pay for any added lots.
2. if stock moves up, credit put spread profits quickly since opex is friday. short call gets rolled to may either to same strike or to 120.
