Quote from FullyArticulate:
Options may not be right for you under the first analysis. If you believe the fundamentals are good and want to take advantage of price spikes, then just buy the stock.
The catch with options is that you have to be right about both direction AND time (and to some extent, Implied Volatility). Your analysis should be something like:
"I think the stock will close over 80 at October expiration", (Oct vertical)
"I think earnings next month will be good, but you never know how the market will respond, so I want limited risk", (Nov calls or vertical)
"I think earnings next month will be a surprise, but I don't know if it will be good or bad, but it will be a big move" (Nov straddle, strangle)
"I think the stock is going to rally to resistance at 85 and consolidate until October expiration", (Oct butterfly, calendar)
"I think this stock isn't going anywhere for the next 15 days", (Oct butterfly, short straddle, short strangle)
"I think the IV for the front month is way too high" (Oct/Nov calendar)
Options require at least 3 opinions (of varying importance): direction, time, volatility.
I hope that helps!