1.Find a stock that has gapped at least 5-10% during the last 2-3 earnings.
2.Buy a strangle (an out of the money put and an out of the money call) only buy 1 strike price out.
3.Buy 3 days to 1 week before earnings announcement.
4.Buy options with at least 6 weeks of time left in case you need or want to hold onto them a bit after the announcement. Also options lose time faster during the last 4 weeks.
5. Use a 25% stop loss
6. Close out the trade after the announcement, or if the stock has gapped in a direction and you think it will continue that way then close out the other side of the trade and hold onto the profitable one.