Registered: Nov 2005
03-10-12 03:14 AM
Not the same risks. IV collapse affects you but you won't lose anywhere near as much vega wiith a spread because to some extent, what you overpay for the long legs, you receive for the sale of the short legs.
Quote from jkgraham:
If it didn't move right after earnings into a profitable range I would close the entire position and take the loss. I would lose a few days of Theta and possibly a lot of Vega if IV drops, but both of those risks are the same risks that Straddles and Strangles face as well.