Well, we gave it a shot. Our hypothetical MNX straddle would have been nice and profitable -- IF the Fed wouldn't have been so generous yesterday. However, when the market went up, a huge chunk of volatility was lost -- and, along with it, a chunk of premium.
Since "up" seems to be the direction of choice, the loss of volatility means it will be particularly difficult to show a meaningful profit on the 200 MNX straddle. Right now, you can exit the position for only about $1.00 loss ($1,000). Not bad. We had a chance at a pretty nice gain -- IF the market would have reacted as violently on the downside.
On the other hand, our straddle options are October options. One could hang on and hope that the increase in value of the MNX outpaces the decline in volatility. This is not my preferred method.
So, there it is. We gave it a shot. Didn't cost a lot. Life goes on.
Be careful, trade smart, and don't be greedy.