âï¸ Strategy Parameters
2 Legs
ð Strategy Logic & Earnings Insight
Long Strangle: High volatility play expecting large price swings. Warning: Post-earnings IV crush rapidly drops extrinsic valueâstock must move beyond the market's expected move to profit.
ðµ Blue Line: Current Valuation (Pre-Earnings IV: 65%)
ð´ Red Line: Post-Crush Valuation (Post-Event IV: 35%)
ð¢ Green Line: Expiration Payoff (0 DTE)
ð´ Red Line: Post-Crush Valuation (Post-Event IV: 35%)
ð¢ Green Line: Expiration Payoff (0 DTE)
ð¯ Post-Event Realized P&L Matrix (Across Overnight Stock Moves)