Started out with Bull Call Spreads and selling Bear Call spreads against them to reduce basis. Everything looked good until ORLY reported blowout earnings. Of course when that happened AZO started heading up pretty quickly in anticipation of it’s earnings.

At that point I closed the bull call spreads for their gains. The bear call spreads were getting run over so I rolled them into ITM bull put spreads for earnings week. Stock has been easing higher and higher so looking good for now. Position is currently 677.5/620.0 Bull Put Spreads so it’s decision time….a few choices here:

1. Leave it alone and hope for blowout numbers and go quietly into the night.
2. Roll the 677.5 short puts into a wide strangle and add some upside risk to give the downside more room.
3. (most risky) Close the long 620 puts and add that to the potential profit and do the roll from above. That would leave the downside naked and really increase margin but give me the highest potential profit.

Decisions decisions…currently leaning towards number two and leaving the put protection in place…