Selling a CRWD credit spread for $1.70 per contract pair with stock price range from $170 to $180. CRWD reports earnings after the bell tonight.

Sell the Sept 4th CRWD $170 call at about $7.35.
Buy the Sept 4th CRWD $180 call at about $5.65.

CRWD is trading at $146.80.

These prices may vary, but you'll want to get a combined credit of about $1.70.

This should result in a net credit of $1.70 per contract pair. Our max profit in this trade is $170 per contract pair if CRWD stays below $170. Our max risk is $830 per contract pair if CRWD expires at $180 or more on Friday.

This is a trade where we need to be right more than 4 out of 5 times to be profitable, but we're giving CRWD almost a 16% cushion to the upside, and that's after the stock has already gone from $120 to $146 just since Monday.

There's a lot of volatility priced into their options tonight, so we will try to absorb some of that premium between the $170 and $180 price range. Make sure you're risking $830 that you can afford to lose if this trade goes immediately higher and we lose 100% of our equity, which in this market is definitely possible. But over the long run I see this as a profitable trade, and it's hard to imagine CRWD opens the week at $120 and closes it above $170 or $180, but we live in interesting times so keep your money management in place should CRWD shock the world and defy the odds.