I am buying a straddle on RIMM right now before they announce earnings after the close. If we have surprise earnings fireworks, RIMM will have a big move up or down making one position more profitable than we will lose on the other position. If the stock doesn't move much, I'll lose money.
buy 1 contract Oct 2010 45 Call -- for $3.65
buy 1 contract Oct 2010 45 Put -- for $2.45
Total Risk is the amount spent of $610 + commissions.