Which strategy is best suited for Event Trading? (FDA, ER etc.) For upcoming events like Earnings Release (ER) and FDA decision (biotech etc.)? The main charasteristics of such events are: an event with a big impact is expected, but direction of the stock is uncertain, the IV rises big (150+) and afterwards drops to normal levels. Which strategies are best for such situations? I think LongStraddle is not the best choice for this, right? What about the ShortStraddle? Any better alternatives?
Here is a free ebook (legal to download) on options trading: https://www.trading-volatility.com/Trading-Volatility.pdf Using options to trade events like earnings (post earnings announcement drift = PEAD) is part of EUAN SINCLAIRs speciality. It's a chapter in his book positional option trading.