Question on double diagonal

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Question on double diagonal

Postby pointedtip » July 27th, 2015, 10:31 am

Hi, i was wondering if anyone could just answer a enquiry i have on a option strategy. I opened a double diagnoal last week on TSLA. From the profit/loss diagram, it states that after 7 days my profit would be 60$ at the stock price of 260. However, after 7 days, my profit/loss diagram changed to a loss of -30$. Is it possible that the front month's IV have increased much faster than the back's month IV resulting in a loss? I always thought that a double diagonal is long Vega and thus should profit from a increase in IV? Thanks.
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