Another warning about buying options going into earnings. Take a look at GOOG options before and after earning release. GOOG went up 34 points but options closed flat to big losses. You have been warned.
Thats why you dont buy Out of the money calls or puts. Buy at the money if your options become in the money you will make money no 2 ways about no matter how much the IV drops. You go too far out of the money thats when it disapates after earnings . Go 1 month out and buy at the money or 1 2 strikes out of money if it moves in your direction you will make a killing