I did an earnings trade in $MON and here are the details:
I shorted the stock at 105
I went long the October 4 weekly 105 Calls
This final step involved a review of the choices. I could have sold the remaining Calls for .27 but elected to create the Call Spread and lower the initial outlay.
The current net on the trade is:
+2.70 on the short stock piece ($3 on 1/2, 2.40 on bal)
-1.27 on the Option pieces
Price continues to hop around post-earnings but as of this post the 104 Calls are trading at $.50