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  1. Yes, 20 bucks a month or 200 a year.
    1 point
  2. @HielkeIn a general sense, I categorize as follows: Low IV stocks are non-earnings IV in the low to mid teens rising to the low 20%'s during earnings. Mid IV stocks are non-earnings IV around the high tees to mid 20%'s, rising the upper 20%'s or low 30% range during earnings. High IV is above this level. This is important because the higher the IV the slower the gamma gains will grow as the stock price moves. So, with a lower IV stock you can get away with 2:1 ratio (if you have decent distance between short and long strikes) because the long straddle gamma gains will be somewhat close to short strangle gamma losses. A mid to high IV stock will have gamma gains grow much slower for the long straddle, much slower than gamma losses on the short strangle (due to its much lower IV and closer to expiration) so with these you want to use a low of a ratio as possible and never 2:1.
    1 point
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