Isolating the Impact of IV Expansion into Earnings

<p><a href="https://ontt.tv/2SOvmKS"></a>Our Short Straddle in X has yielded an extremely interesting opportunity for us to analyze and examine. The stock has earnings coming up next Thursday (seven days from today). With this strategy being underwater currently, we’re not going to carry this position through that earnings announcement. </p><p>But, <a href="https://ontt.tv/2SOvmKS">remembering that a position’s P/L is only driven by delta, theta, and vega</a>, we can hold this position right up until earnings, strip away the P/L that resulted from both delta and theta, and isolate just how much the expected IV expansion over the next week actually hurt us.</p>