NKE, MU, COST | Nike, Micron Technology, Costco Pre-Earnings Rising IV | Double Calendar Spread Options Play

Hey traders, hope you had a great weekend!

Setup: 9/12/2025 Double Calendar Spread

Debit Paid: $2.11

Status: Holding in profit as IV rose into earnings.

Takeaway: Textbook example of why this strategy works well into earnings IV build-up.

Source: Tradingview.com

Source: OptionStrat.com

Setup: 9/8/2025 Double Calendar Spread

Debit Paid: $11.04

Status: Holding in profit — COST stayed within range and IV supported the long legs.

Takeaway: Reinforces conviction that range-bound stocks near earnings are ideal double calendar candidates.

Source: Tradingview.com

Source: OptionStrat.com

What makes NKE interesting is that implied volatility (IV) often rises before the earnings release. With analysts split on guidance and the stock trading near all-time highs, I’m looking at a neutral options play towards earnings with defined risk known as the next double calendar spread.

Source: moomoo.com

Source: Tradingview.com

– Consensus: Bullish (“Buy”)

– Avg Price Target: $84.71 (range $64 – $120)

– EPS Estimate: $0.27 (+107% YoY from $0.13 Q3 2024)

– Revenue Estimate: $10.98B (+YoY growth expected)

– Track Record: Beat EPS in last 4 quarters

Over last 4 quarters, NKE stock tends to rise pre-earnings.

Current Price: ~$71

Expected Move (EM): ±$5.97 → $65 to $77

I prefer the double calendar spread options setup since the stock is moving downwards presently whereas past data showed otherwise. Alternatively, you can also consider putting on just the single call calendar spread as a directional trade since price will rise towards earnings.

🧾 Options Expiration: Oct 3 (11DTE) and Oct 24 (32DTE)📉 Expected Move (EM): ±$5.968 ($131.36 - $163.86)

🧠SETUP

– Front Month:

– Back Month:

💰 Max Profit: ~$267.46 per contract

⚠️ Max Loss: ~$109.40 per contract

🎯 Breakeven: ~ $60.372 - $85.489

– Short leg = highest IV (profit from IV crush)

– Long leg = lower IV, more vega, less theta burn

– Defined risk

– Wide profit tent ($65–77)

– Works best if stock stays near strike(s)

– Big breakout move = max loss

– Must time entry (7–14 days before earnings)

– Can potentially experience IV crush before earnings

– Limited upside (2–3x debit)

– Bid/ask spreads can be wide

I’m running with NKE as my next earnings double calendar after MU & COST have shown strong results. The $65–77 range lines up with the expected move, and the setup defines risk cleanly while letting me capitalize on IV behavior.

– Playing the range with calendars?

– Or looking for a breakout trade?

Drop your ideas below 👇

Happy trading this week!

⚠️ Disclaimer: This post is not investment advice and is meant for educational and entertainment purposes. Not investment advice. Do your own research & manage your own risk.