Earnings Play: BOT 1 CLF OCT 23 '20 8 Straddle 0.57 USD

On October 22, 2020, we bought straddle options on  CLF stock expiring on October 23. 

CLF was due to announce earning report October 23 pre-market, and we decided to monetize on it

here is our trade setup:

  • BOT 1 CLF OCT 23 '20 8 Call Option  0.37  USD  
  • BOT 1 CLF OCT 23 '20 8 Put Option   0.20 USD 

For these trades, we paid 57 USD (before commissions)

These trades come as the #30 and #31 in the month of October, as these are the debit trades instead of getting paid, we paid money to have them

here is what should happen next to make us some profit. 

If CLF stock is trading above $8.57 after earnings announcement we are making a profit, also if the stock is dropping below $7.43 to make us a profit

As our strike is constructed around $8, the stock should move about 7.1%