We're back from the listener question/congressional aide briefing break, and ready to move through the Playbook. Today we are looking at an iron condor going into earnings. This is on page 126 of The Options Playbook, or you can always find it on OptionsPlaybook.com.

Specifically:

• Looking at a TWTR paper trade going into earnings (which, at the time of this recording, was going to be in 17 minutes)
• TWTR is at the highest IV it has ever been before earnings
• The long straddle is implying at least an 18% move in TWTR after earnings (non-directional)
• Setting up the trade
• Picking strikes
• Selecting the right expiration
• What is the net cost?
• What is the risk? Reward?
• What do we want to happen?