Example 1: Pre-Earnings Long Straddle (High IV Crush Vulnerability) User Input: "I'm holding a short-term AAPL Straddle expiring this Friday, bought right before earnings. IV is currently at 120%, and the stock hasn't moved much today." Example Output: Risk Alert Banner: HIGH RISK: Severe Implied Volatility Crush is actively destroying option values right now. POSITION HEALTH & GREEKS: Your Delta is currently neutral, meaning direction isn't hurting you yet, but your Vega is dangerously high. Theta (time decay) is accelerating rapidly against you. THE IV CRUSH THREAT: Once earnings are announced, IV will plummet from 120% down to baseline levels (around 40%). This instant drop will slash the value of both your call and put options by 50% to 70%, even if the stock price stays completely still. WHAT CAN GO WRONG: The stock remains range-bound, and both legs of your straddle expire completely worthless because the volatility collapse wiped out all the option premium faster than price movement could save it. THE EXACT ACTION PLAN: Close the entire straddle immediately before the closing bell to salvage whatever remaining extrinsic value is left. Do not hold through the earnings announcement unless you intend to gamble. Trader Reminder: Never trade naked long volatility events without factoring the IV crash math into your target exit.