INTU, the makers of Mint, TurboTax and QuickBooks report earnings on Tuesday 8/24 after the bell. The Implied Volatility Rank is pretty high at 31% which makes this neutral premium selling strategy attractive. Here’s the trade:
- Buy the Sept 17 520 Put
- Sell the Sept 17 525 Put
- Sell the Sept 17 585 Call
- Buy the Sept 17 590 Call
Try to collect $166 on entry, which is 1/3 the width of the strikes, 5$ wide, 590-585 the distance between the 2 puts and 2 calls). This defined risk strategy has a max loss of $334, and a 75% probability of making 50% of the credit received, or $83 per contract.