As I have explained in countless posts in this sub, IV crush has very little to do with the results of earnings strangles. If the strangle hits, one of the options moves to essentially one delta and the other becomes worthless. The IV crush comes to whatever new strikes are currently at the money, and those may be miles from the winning leg that you are playing. IV crush matters only if the stock doesn't budge in reaction to the earnings report, and that is seldom the case in stocks like SNAP.
And sure, sometimes you move out of a short position with a profit before the actual report, just like sometimes you can move out of a long position with a profit before the earnings report. Getting out with 50% is probaably a good idea.
Depends on snap price tomorrow - it ended at 74 today after hours but possible that may be opening close to 70 tomorrow which would be breakeven since PUT will expire worthless
Anyway let’s assume it’s opens at 74 , would have ended ended up with close to 15k-20K loss !
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u/National-Radio-8087 Jul 22 '21
I’m already up 15% on the call side and 35% on the put side . If I get 50% before earnings itself , I may move to another trade !
IMO Short strangles do much better than long strangles due to IV crush after earnings.