A drop in stock price can be an opportunity to get your money back and even make some profits. Here’s how to do it

If the stock you own goes down in value, you can use options trading to get your money back.

Case in point: Fluor Co.

The stock price has fallen 15% since the announcement of Q1 2026 results.

Net income improved to a healthy $160 million from losses in the prior-year and prior-year quarters. The market is reacting to the reduction in full-year EBITDA guidance due to revenue underachievement ($3.66 billion vs. consensus $3.89 billion) and increased mining division costs towards the lower end of previous guidance.

However, the bullish “data center” argument remains. CEO Jim Breuer highlighted the proliferation of new awards for gas fuels and nuclear power, the very backbone of AI infrastructure. For shareholders looking to recover from this morning’s $2.50 haircut, the 1×2 call ratio spread provides a highly efficient way to repair their position.

Recovery Play: 50/52.5 Call 1×2 Ratio for June Long Stocks

A 1×2 call ratio spread involves buying one call with a lower strike and selling two calls with a higher strike. Using a monthly expiration date of June:

Buy (1) June $50 Call Sell (2) June $52.50 Call Maximum Gain: $2.50 Maximum Loss: No premium spend, but stock can be void Skill Level: Intermediate

Net credits: Ideally run in small credits (e.g. $0.10-$0.25) depending on the post-earnings volatility level.

Lowering basis through credit: Receiving credit slightly lowers the effective cost basis of existing stock without requiring additional capital expenditures. “Sweet Spot” Acceleration: If FLR returns towards pre-earnings levels, this trade will reach its maximum profit of $52.50. Between $50 and $52.50, the long call quickly increases in value, while the two short calls decay or remain out of the money, accelerating the recovery. Monetization of IV after monetization: Even after an “IV crash”, the residual volatility risk premium (VRP) is typically higher for out-of-the-money (OTM) strikes. Selling two calls allows you to capture more overvalued premium than a standard vertical spread.

Risk management and outlook

The main risk of a 1×2 spread is a “naked” short call. If the data center situation goes parabolic and the FLR exceeds $55.00 (the approximate break-even point for the spread), you will effectively limit your profits or face the obligation to sell additional shares.

But for stocks that just lowered their guidance, a vertical moonshot is less likely than a gradual “recovery” as the market clears its $25.7 billion backlog. This strategy bets on a steady recovery to the $52.50 level, using the market’s own volatility to pay for the “insurance” of a pullback.