'Tis the season...earnings season. Instead of avoiding earnings, we are jumping right in, and are going to do so with a long butterfly with calls on GOOG. If you want to follow along with the book, you can find this on page 102.

Today, Brian covers:

• A review of last time, including a mistake we made with the math
• GOOG announces earnings after the close on July 28
• Setting up a butterfly to capture earnings numbers
• What is the most at-the-money straddle in the nearest-term expiration?
• Why do we look at this straddle number?
• What is the outlook?
• Setting up the butterfly
• What kind of move is the market expecting?
• What is our maximum risk? Reward?
• Choosing the 9-day versus the 2-day expiration