re: NVDA puts, this is the way. Or maybe just laugh at me on Thursday.

quote:

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Why do you care about IV with 2 days to expire? They either ITM or not, it's an all or nothing bet.

They are put verticals though, i don't do single leg options.

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I believe what he’s referring to is the phenomenon commonly known as “IV crush”. Implied volatility in equity options tends to collapse immediately after an earnings announcement. Right now the IV for NVDA for May 27 expiration is 80.39% and in the 83rd percentile. High on both counts. Some sort of extreme market action could keep it that high. But typically you’d see it fall off by a good bit the day after earnings are announced tomorrow afternoon.

You mentioned that you have a long put vertical trade. So right now your long put has some IV juice and so does your short put. You have a max profit if it dives through both your strikes, though you’d need to buy and sell to close prior to expiration to capture it. But up until any sort of IV crush happens, your long put vertical could be trading for more than that max profit spread - just depends on where and when you bought.

Depending on what your debit is, sounds to me like you have a good trade on your hands. Congrats.