Out of the last 4 earnings reports the stock rallied twice and sold off twice. The near term at the money straddle is indicating a move of around $2.35 (10.9%). The stock has moved on average 11.3% on earnings over the past 4 quarters This gives us an upside measure move target of $25.05 and a downside target of $20.35.
Trade: Buying the Oct 22.5 Straddle for $2.35
Risk: $235 per 1 lot
Reward: Unlimited
Notes: The straddle is implying a move of 10.90% but the stock moves on average 11.30% after earnings.