I have been reading up on options. One strategy I like is the Straddle. I have had some success with it - I only used it once so far. Here is the way I played it (this strategy most likely will work for high beta, 2 or more, around earnings season):
So, you screen for stocks that usually make big moves, $2-$4, when earnings are reported. Once you find a stock put on the straddle by buying a CALL and a PUT at the same strike price. The day the earnings are released, first thing in the morning, take a leg off the straddle; for instance, if the earnings are good the value of the CALL goes up so you would sell the PUT at the open and vice versa if the earnings are bad.
When you sell your CALL/PUT - depending how the earnings are reported - you will lose some money but you should make up for it on the option you held on to plus a healthy. This has worked for me the one time I used it and I would have to try it out on more picks to confirm.
Let me know if you find a potential candidate.
Keep in mind, it has to have sufficient average daily volume of greater the 1 million/day, a pps of $50 or more, at least 1 billion in market cap, be about a week from reporting earnings, and the options have to have relatively small spreads increments.