I have a new trade on today for $JCP Earnings:
Here is the breakdown:
I am long stock at $8.75
I am long the November 22 weekly $8.50 Puts
I am short the November 29 weekly $8.50 Straddle
This was done for a $.87 credit
On any weakness, I would expect it to be short-term and thus I would sell the long Puts on Friday for whatever value (so much is priced in now). Any bounce, well, I am capped at $9.37 until next Friday.