MU Earnings: The Short Vol Trades

MU reports after the close. Current setup: * Stock: \~$1,016 * IV: \~193% (2DTE) * Expected move: ±$117 (\~11.5%) * Little skew either way The two cleanest expressions here are in my opinion these:: * ATM short straddle (\~$117.5 credit) * 905P / 1120C short strangle (\~$35 credit) https://preview.redd.it/i7zpdgplba9h1.png?width=1172&format=png&auto=webp&s=9de3ba57d822bec1fce2783ffd52f56100a1c534 Personally leaning toward the strangle with small sizing (\~0.65% account risk). The thesis is simple: realized move < implied move and IV gets crushed after earnings. Obviously this is short gamma into one of the biggest AI-related earnings reports of the quarter, so a gap-and-go move can get ugly quickly. This earnings report can either make or break the market. For those trading MU: * Selling premium? * Buying premium? * What move are you actually expecting after the report? Curious how everyone is positioning.