Question: 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

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.

  1. Based on your fundamental analysis, MSFT should moderately beat Q3 consensus EPS expectations. The best option strategy to maximize profit from your MSFT view is:

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

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