Looks pretty nice coach...tough environment to find IV ...volatility seems to be dead
OCs Implied Volatility Trading Journal
- Thread starter El OchoCinco
- Start date
Yes but there are always volatility skews during earnings season 
I will hold through earnings only if the stock really looks dead in the water and I want to get to expiration so the shorts can expire worthless. Otherwise I would get out at expiration if there is a nice profit..
My comments above were in reference to the calendar position. They are FEB/MAR so no additional months to roll unless I roll into a bull call or bear put spread in MAR. I would hold this calendar until earnings so that I can get the IV crush in the shorts which will only occur after the news is out. So whether earnings are pre or post market, I hold until the next trading period when the IV will collapse.
On these kinf od vol plays using calendars you really do not handle the gaps. It depends on the stock. This stock does not have a history or large gaps off the earnings so I kept my strikes surrounding the current price. If the stock happens to gap up or down outside, then the position at worst becomes worthless and I lose my tiny net debit.
However, since the longs will have more time value than the shorts and the shorts will suffer a volatility crush, the position will not become a total loss and I can close out with some premium and move on. This is not an everyday type of trade but simply one I put on when such an opportunity arises. Based on the stock, I expect it to stay within the strike prices after the earnings and thus be profitable. If I am wrong, I risked such a small amount it will not be that painful and I can look for other opportunities.
However, since the longs will have more time value than the shorts and the shorts will suffer a volatility crush, the position will not become a total loss and I can close out with some premium and move on. This is not an everyday type of trade but simply one I put on when such an opportunity arises. Based on the stock, I expect it to stay within the strike prices after the earnings and thus be profitable. If I am wrong, I risked such a small amount it will not be that painful and I can look for other opportunities.