I'm a catalyst trader at heart. Generally, with Bio, I follow FDA calendars on companies with upcoming events, then research to see the markets sentiment on expected revenues, approval chances, expected results from trials, etc....
Then, I look at premiums relative to current SP. With DRRX, I was naked calls for 2 weeks until I was presented with an opportunity this week to get the puts cheap as SP rose. I was in the trade at just under .60 total, it just happened to be a straddle being that 2.50 was the lowest strike. I'm not opposed to straddles, however with higher priced stocks it is more difficult to find discounts on premium so I tend to start building the position early and remain patient....also ignore the chatter. It's easy to get excited on a run and buy to expensive. Strangles, I try to get these as close to current SP as possible, but on potential parabolic moves, especially with SP sitting at mid 52 week levels, I may buy further out lotto Strangles to the trade to try for luck. It has paid off with a few trades over the years....SRPT was my largest trade of my life. Point being, I'm patient, I get lowest premiums possible so that on a move I can (ideally) let the other side of the trade go for peanuts relative to the gain on the winning side which just needs to clear strike my premium amounts. Honestly though...I could sell my call side here right now if I wanted to and clear a profit for the entire trade. I may take some today to play with house money depending on today's action.
