I've been trying to play earning's for a while now, don't even know what to call this it's like an Iron Condor turned into a horizontal spread?

    BTO $110p (9/27) – STO $115p (8/30)
    BTO $145 (9/27) – STO $140 (8/30)

    It's an iron condor but the dates on long legs have been staggered, the IV becomes 70% vs. the short legs are 144%. So the short legs will crush providing massive premium, the long legs will dodge the IV crush since further out in time.

    Call side

    Put side

    Here's the PnL graph which probably deceiving cause the long legs will crush down to 55% if were to guess, still that's a wide breakeven and good profit per contract. The goal is to play a neutral structure, capturing the high IV selling for huge premium, going long on calls/puts which will dodge most of the IV crush, and holding through earning's to keep selling against and riding price movement post reaction maybe for a week or two.

    CONCLUSION: Can only open this trade on the day of earning's, but it's capturing strengths of an Iron Condor and eliminating its weaknesses by giving time on long legs. Still can have strikes blown out so would place these at wider strikes if were selecting strikes. What do yall think of this idea? Is this a thing?

    Interesting Idea for NVDA Earning's
    byu/breakyourteethnow inoptions



    Posted by breakyourteethnow

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