The Calendar Spread Strategy I like calendar spreads for Nvidia here because it allows me to take advantage of options premium volatility as the volatility going into earnings is higher than usual. A spread allows you to wager on the stock's price across different points of time. A calendar spread allows you to buy a later date call and sell an earlier date call into earnings to take advantage of the increased premium. The strike prices would be the same and above the current price if you are bullish and below the current price if you are bearish. The goal is for the share price to close below the strike price of the call so that the earlier expiring call expires worthless leaving you with a free and clear shot with your later expiring call but at a much lower cost. Bull and Bear Spreads In addition to calendar spreads, you can also consider bull call spreads and bear call spreads. Bullish call spreads are similar to covered calls where you're betting the price of the stock will rise. But in the case of a bull call spread, you're using two options rather than a stock and an option. Bear call spreads are the exact same as bull call spreads, except in this case you're using puts instead of calls. These are all strategies you can consider when trading a company like Nvidia ahead of earnings. Action Plan: Nvidia reports tomorrow and due to the size of the company – its earnings will dominate the headlines over the coming days. Right now I believe a calendar spread trade is a move to consider for the chipmaker. In The War Room, I go over how to use calendar spreads in more depth. If you'd like to join, click here. | 
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