1)Microsoft Corp. (US ticker: MSFT) is expected to release its Q3 earnings on October 21. MSFT is currently trading at $57.50. Premia on the November $55, $57.50 and $60 MSFT call options are currently $7.00, $4.50, and $3.00, respectively. And on the November $55, $57.50 and $60 MSFT put options, premia are currently $3.50, $5.00, and $7.00, respectively.

An analyst you follow and trust has issued a sell recommendation for MSFT on a weak Q3 EPS forecast. The best option strategy for you to maximize profit from her MSFT view is:

1. A $57.50 $55 bear put spread
2. A $57.50 $55 bear call spread
3. A $60 $57.50 bear put spread
4. A $60 $57.50 bear call spread
5. A $60 $55 bear call spread