There is no doubt that Apple (AAPL) had a remarkable run in the last three months. It reached another all time high Thursday at $633. Some people would argue that it's gone up too far too fast. Others say this is only the beginning, based on the fact that the stock is still cheap. Maybe you fall somewhere in between.
I'm asked many times how we choose between Long Straddle, Long Strangle or Reverse Iron Condor (RIC) for our pre-earnings plays. It's always a balance between risk/reward. All of them benefit from IV jump (vega) and/or price movement (gamma). The biggest (and basically the only) enemy is the negative theta.
