There will be 3 pieces to the trade, the buying of a wide put butterfly, the selling of a put spread and the buying of a call spread.
Risk & Reward
Our trade will use $7,900 in margin as we are wanting to minimize the cost on the trade in the event the stock does not move as we have the weekend to wait through before SPOT reports Monday morning. Our breakeven levels are 144.50 on the upside and 129.50 on the downside. We start getting into hot water if SPOT breaks below 121. If SPOT does not move, we have $400 of risk in the trade. Keep in mind, we have 5 full trading days AFTER earnings are reported.