thats a calendar spread so they shorted VOL the later spread makes money when there is a vol crush following earnings but its also skewed. Also they did puts not calls so they assumed it was a tank
You take the actually recent volatility or the implied volatility and use it in a calculation to determine the chances of it reaching a given strike price
Hey guys what are some ways to mitigate risk on an iron condor?
One way of course is to buy a way out of the money option on SPY or some other good value option puts to avoid catastrophic overnight losses. What else?
I agree, dont trade these options bc the spread just makes them untradeable and will eat your profits. If you get a 100% profit its easy to get that eaten up bc you cant get out of the position.