NEXT WEEK'S EARNINGS PLAYS OF NOTE: BIDU, GILD, TWTR, WFM, FB
Nevertheless, as a premium seller, BIDU , GILD, TWTR , WFM , and FB all look like great candidates for premium selling opportunites, with IVR's in the 90+ area.
The way I play is to set up my options strategy toward the end of the market day immediately preceding the announcement, with options expiring on the Friday immediately following the announcement if the announcement is early in the week (Monday or Tuesday) or on the following Friday if the announcement is going to be on Wednesday or later.
If buying power permits, I generally go with a neutrally biased short strangle; otherwise, with a delta neutral iron condor. The short call and short put strikes are generally placed at the 1 SD line for the expiry, and -- if setting up an IC -- with the long strikes at 3-4 strikes outside the short ones (the distance between the short and long strikes is subject to individual preference; the farther out they are, the greater the max profit is, but also the greater the max loss is; naturally, some underlyings have larger strike widths than 1.00 (e.g., BIDU , distance between strikes is 2.50)).
BIDU July 31 172.5/177.5/230/235 Iron Condor
Max Profit: $93
Max Loss: $407
TWTR July 31 28.5/42 Short Strangle
Max Profit: $91
Max Loss: Unlimited
Notes: I think it's highly unlikely that I'll play BIDU or TWTR , due to the outsized moves they seem to display during , which could easily breach the 1 SD line one way or the other. GILD, TWTR , WFM , and FB might be tamer affairs ... .