### Comment:
So you say it is free money to bet on volatility spikes?

### REPLY:
Yeah because one of your positions will be over 100% so worst comes to worst you break even when your losing position goes to 0; with a volatility spike though the least you’ll get is like 150-200% though so you’ll end up net positive on the straddle if a major drug is approved or denied on their PDUFA date

### END.