GoPro (GPRO) is active in the after-hours trading: the stock is down 5% after reporting quarterly results: (Source: Google Finance) The story is simple: the stock is volatile, hence, options are expensive. One of the best strategies to use in this case is iron condor, which represents a sale of the spreads: one put spread and one call spread. With iron condor, you make money when volatility drops, and the stock does not move much in either direction until expiration. Specifically, the best strategy is short-term iron condors because straddles lose value due to time decay a lot faster than out-of-money puts, which are bought to protect against violent swings in the underlying. Hence, I am eyeing an iron condor with options expiring next Friday, May 13th: (Source: optionsprofitcalculator.com) Note: the prices may change significantly tomorrow as the stock gaps up/down. The risk-return profile of this trade is given below: (Source: optionsprofitcalculator.com) This trade is attractive for two reasons: (1) It is inexpensive - one straddle costs less than $100. This is manageable for most retail investors; (2) The risk-return ratio is favorable - for every one dollar of risk you are compensated by $1.6 of expected return. In fact, you immediately get the cash credited to your account which is also nice. I recommend going with at least 5 contracts. With this size, your maximum return is around $460 (before transaction costs), while the maximum risk is around $290. What do you think of this opportunity?