The Traderszone Network

Published in TZ Latest News 24 April, 2017 by The TZ Newswire Staff

Long straddle into earnings, opening before IV increase, and closing before IV crush

From my understanding straddle price should increase going into earnings (due to rise in IV), and should be able to offset if not overcome theta decay.

However, Tasty trade has covered this topic and mentioned that straddles do not increase in value despite IV increasing going into earnings:
https://www.tastytrade.com/tt/shows…des/buying-premium-before-earnings-04-26-2016

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