Expiration 11.7.25 and 12.5.25
Super Micro Computers Inc. is currently trading at $50.13 after hours(11.3.25). Set to release earnings tomorrow after hours 11.4.25, we set up a two trade, earnings play. Trying to get honey like this, might unsurprisingly end with a swarm of bees, burying their stingers in our greedy fur. The first trade will be taking $36,000 and selling 8 Cash Secured Puts with a $45 strike(~.26 delta), expiring 12.5.25. Should those contracts expire Out Of The Money, we stand to profit $1,855.66. The second trade is using $1500.12 of that potential profit to buy 3 Call Contracts with a $47.5 strike(~.69 delta), expiring 11.7.25. With only 3 DTE on the second trade, that theta crush will be real and anyone familiar with options contracts, is probably having their head flooded with the myriad of things that could end bad, if this weren’t a paper trade, for research purposes only.
Next update 11.8.25
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