Hi, recently I ran a bearish diagonal before earnings on ZM and the front month short strike was higher in IV , once it went ITM the delta and IV dominated the greeks increasing the value gap between the short and long, despite the back month long strike being ATM and with less theta decay. It was the week of earnings so maybe the IV was too high and zoom is a highly volatile stock anyway that had a large expected move. Maybe the takeaway is to roll or sell the short if it gets close to being ITM , my plan was to profit from IV crush after earnings but it stayed fairly high.

Thank you for the suggestion, I certainly will going forward. That statement was in reference to the written volatility level just before. I intended to highlight that the volatility level wasn’t what I prefer when looking to setup a diagonal spread. Feel free to message anytime.
God bless,
Jeff