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This is the simple arithemtic average of all the lines you are seeing at point x = 19 trading days before the earnings announcement That means that the last trading day before the earnings was July 21st, 2020 (so earnings were that day in the evening of the next day in the morning before the open). The expiration date of the options used to calculate RV was August 21st, 2020, which is exactly 23 trading days after the last trading date (2020-07-21) Often the expiries used to calculate RV value only come into existence a few weeks before they expire. That is particularly an issue with weekly options. Then the lines start where they started trading and hence data is present. Your questions are perfectly valid, it is not stated explicitely what is what. Let me know if you have more questions.... and take your time, when I started here I also had to get used to a lot of new stuff.

Hi @salliah, Thanks for joining And I am happy to answer your question. I agree that all that information can be a little overwhelming in the beginning. Correct, and that independent of the actual stock price level. Let's take the first line: RV of that straddle has been 20.47%, while the stock price was 154.32 USD. The level of the volatility index VIX on that day has been 37.7). The RV has been calculated using options expiring on May 8th, 2020, i.e., the first maturity coming after the 7th day after the earnings announcement (as chosen by you with dropdown 'Expiry after earnings').. And that all was on the 8th trading day before the earnings announcement on or the day after April 29th, 2020.

Even though you posted this 3 years ago--I joined CML TradeMachine and was reading through the blog and came across this and it seems like such great advice for newer members such as myself not to "chase" trades much beyond the midpoint of the market---I have gotten much better at walking away from trades that will not fill me at the mid or better.

I am new member of SteadyOptions and have to admit that this website is nothing like anything else I have seen in the past. I know that there will be losses from time to time as this is part of any investing process, so I am not concerned about incurring a few losses here and there. I am truly impressed by the content and the pedagogic approach of Kim. Also, it truly feels like a community where everyone interacts with each other. Having the Founder not only joins the discussions but alao change his view based on some analyses provided by members is very unique. Didn’t know where to post this but had to say this.