Long inventory with earnings ten minutes out
You make markets in a stock you believe is worth , and random flow has left you long shares. A scheduled earnings release is ten minutes away, and you are unsure fair value will survive it.
You have two levers: where you center your quotes (skew) and how wide you make them (spread). What do you do to each, and why are they answering different problems?
Show a hint
One lever steers your book back toward flat; the other protects you from being picked off. They are not the same knob.
Your answer
This one is open-ended. Work it through, then check your reasoning against the full solution.