Earnings Beat – BA Trade

Market Context
Good day Insiders,

Boeing is set to reporting earnings tomorrow pre-market open and this one does seem too good to let go by the wayside. At the time of this update, BA is trading at 374 per share. Implied volatility is sitting at a 51% and this gives us an expected move of +/-$16 giving the potential for BA to head up toward 390 and down below 360. Let’s construct our trade using these parameters.
The Trade
Using the buying of a put butterfly, the selling of a put spread and the buying of a call spread.

Risk & Reward
Our trade uses $7,900 in margin and so long as we get movement, we are sitting pretty. If BA does not move post-earnings, we are looking at a cost in the trade of $385.