So I want to put on a position before tommorow morning's earnings are released. Maybe selling the May 17.5 strike and then buying two of the May 20 strike for a credit (.70). Anyone with a better play??
What's your outlook for the stock and within what time frame? Also, has implied vol been creeping up in advance of earnings or is it, like on most stocks, towards the lower end of the range? The answers will help you determine the optimum approach. But I will say this. I'm not sure a front month backspread, which requires a big directional move and/or a pop in vol is the best way to go regardless after the news is already out.
I expect that the stock will move after the premarket annoucement tommorow (Im anticipating that they will beat estimates). Likely up but it could just as easily plummet on any kind of bad news in the report. (So positive gamma is a must). Im seeing IV at around 50 which looks to be in the middle of its IV range. (though I didnt check).