So it is well known that IV will rise significantly before earnings and then "crash" after the earnings announcement. But the challenge becomes how do you take advantage of this ? What strategy can you use to get a good theoretical and practical edge ? The key here being a practical edge that takes into consideration what the market does. For example, you will hear buy a near term ATM and sell the longer term ATM...go ahead and model and then you will see why the markets are efficient. Another idea is to do a pairs trade, eg. INTC/AMD or against an ETF like SMH...does not really work in practice. For example, with the INTC/SMH pair...the IV of the SMH almost increases at the same rate as INTC during INTC pre-earnings periods. So my Q is simple...what can be done to make a profit from pre-earnings IV increases ?