Trade: Selling the September 40-42.5 Call Spread for $.70 credit
Risk: $180 per 1 lot
Reward: $70 per 1 lot
UPDATE 9.11.2012 This Spread is pretty much worthless, but I am letting it expire that way instead of wasting commissions.
Average Magnitude of Post Earnings Return 4.4%
NearTerm Straddle Indication:
Term Strike NBBO Size %Spot(Mid)
09/22 $37.5 $3.25 – $3.55 171 x 394 8.8%
09/22 $40 $3.10 – $3.35 60 x 99 8.3%