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The Sympathy Straddle: An Interesting, Profitable, Event-Driven Phenomenon

I've noticed a very interesting trend lately in the market and I think putting together a post detailing this approach is a necessary memorialization of a strategy that has been bringing in significant 1-day profit in the instances I've observed (50% total last week). We are calling this one the "Sympathy Strangle". And to get the obvious out of the way: There is no free money in the market and there are no guaranteed returns. What I have observed is a very limited sample size but it's an idea which I find to be incredibly interesting and will lay out here:

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