Which strategy is best suited for Event Trading? (FDA, ER etc.)

[earth_imperator]

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?

 

[traider]

HFT

 

[delta_1]

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.

 

[Handle123]

Fade the charting patterns

 

[ironchef]

Fade the charting patterns

@Handle123, good to know you are still around.