Cree reports earnings tomorrow after the close. The Oct4 Weekly 75 call is trading at 3.25 x 3.45 The Nov1 Weekly 75 call is trading at 3.50 x 3.65 The Oct4 Weekly 75 put is trading at 4.80 x 5.10 The Nov1 Weekly 75 put is trading at 5.10 x 5.25 There is a 5c to 40c spread for the calls, and a 0c to 45c spread for the puts. If you shorted the current week, and longed the next week, there would be a net debit of 40cents at the midpoint. Does this trade seem like a good idea? Ideally, Cree would end this week at 75. If it ends the week $10 or $15 away from 75, I would think closing the ITM option is not worth it due to the spread, so hedging through stock would be the best choice ? Is this trade only a good idea if CREE finishes the week close to 75? However, if it does finish near 75, the next week options will have been purchased for a very cheap price. Anyone have any thoughts about this?