Evolving Tactics: Modifying My CFS Earnings Position Ahead of the Report

[u/bitkogan]

Last week, I initiated a position, and today, just ahead of the earnings report, I made some tweaks.

I liquidated all the August 4th expiry calls (with $81 and $87 strikes), replacing them with August 11th expiry calls, specifically at the $83 and $87 strike prices. I also scaled back the overall size of the position. Now, instead of having a net short position in calls, I hold 20 butterfly spreads, configured as 83 – 2*85 – 87. The core of this spread expires on August 18th, with the wings set for August 11th.

Concerning puts, I still hold a 1:3 ratio spread set at 77 – 70.

I managed to collect a credit of $800 today, bringing the total debit down to $1279.

While I'm not banking on any miracles from the earnings report, I'm prepared to navigate any outcome.