Well longer-term may mean weeks instead of the short time frame here. For example many stocks hit lows in their IVs in the trough between earnings- GOOG is great example. So you get in at a point like that and then perhaps in two weeks sell the straddle as long as IV gains outweigh theta.
I thru on a candidate WMFI into my paper trade account (a few days ago)...i have a put calendar (for real) however its not great (as a candidate) as earnings are going to be reported next week so the vols should continue to rise...also it looks like insiders/market think reports will not be so hot...drifting down...
straddle or strangle? almost 20 pts above today? very bullish I guess...my cal is Feb/May 72.5 and I think it gets pinned at 72.5 in Feb (I hope )
Why did OIH straddle dropped ? Was it because of vol dropped or theta ? Same questions go for ACL. For ACL, I thought the vol will keep increasing because of earning. Thanks Nick