are you guys kidding? a 7 point middle in a big time tv game is gold. i think your odds are pretty good to win both bets. i'd middle at least half of the original bet.
you are gambling to make money, so when you can get a risk free chance at some $$ amount, you should take it.
I laid one unit of mine on USC -3.5 with a huge OSU fan, before the line came out for the current game, and seeing the huge move now has me rethinking it...