Anyone that claims to know if QIHU will take off or drop after earnings is an idiot. Trying to play options on an earnings announcement is worse odds than playing roulette in vegas and betting on black. It's an irresponsible way to handle your money. The only way to put the odds in your favor is to bet on that by the end of this year QIHU will be noticably higher than it is right now. By the end of 2015 QIHU will be much higher than it is right now.
QIHU could announce and then go up $20 and it could announce and go down $20 come next week. By the end of the month it won't matter. Why don't I care? Because I invest in the stock not the market.
If you invest in the company you will win... if you invest in your ability to time the market you will lose.
Agree that nobody knows what the stock is going to do after earnings is announced. However, there are ways to play options to mitigate risk. You can write next week's covered calls at the money and protect 4% of your money or you can buy protective puts if you do not want to cap your upside. If the stock goes down 8 points on Monday just holding shares will see you losing 8% of your investment in one day which alone is a big risk. Buy and hold is sound with QIHU but you can use options in various ways that are not like playing roulette.