Open the position at the final week of the front month expiration Long backmonth atm straddle Short frontmonth otm strangle x strikes out Basically profit 1) theta decay 2) movement of the underlying. What are the risks? the ones i can see are 1) significant IV drop (assuming under normal condition when backmonth has higher vega exposure) 2) underly gaps out of the spread range, your backmonth straddle will lose most of it value from 1 side while the other side's profit gets capped by the short frontmonth thus making it a loser overall. Are there any other risks? it looks to be a relatively safe combo to play the earnings (with the frontmonth expiration week = earning release) or in general?