Leaderboard

I've added the max move in the barchart that already contained the straddle RV/Implied Move and Price Effect, i hope the chart is still readable.

I think your calculations for risk return are incorrect. you receive .48+.82 for the shorts less .45 for the longs =.85 credit. the risk is 2.5 (the width of the wings) -.85=1.65. so risk /reward ratio is about 2/1.

Anyone looking at any post-earnings ICs while residual IV is still high? Probably best to go with wide strikes but might be an opportunity to open here

@drcruzTo really get to know the ins and outs of the hedged straddle trade, neither of these is that important IMO. What is important is... Straddle RV charts (volatilityHQ or artoftrading). Seeing the standard rate of RV decline to determine (in the absence of gamma) if short strangle sales will cover the typical RV decline. Standard IV charts (ivolatility.com is one place, but you can get these many places). To classify a stock as low, medium or high IV. The lower the IV, the higher long to short ratio you can use (but never above 2:1). Past earnings history of implied move and post-earnings move (optionslam, marketchameleon). See RV levels on earnings day for prior cycles, pay attention to the previous cycles as large moves beyond the implied (or minimal movement) can set an expectation for the current cycle. All hedged straddles can make money if they stock price moves, but with many stocks the short strangles will not compensate for RV decline if you don't get that stock price move. So, you try to pick candidates where you don't NEED the stock price movement to avoid losses.