To assess the price move expected by the market OptionSlam uses the current straddle/strangle pricing model. Presuming the rules of supply and demand provide for an efficient marketplace, we ascertain the expected price move will be approximately equal to the cost of the current straddle. Once an earnings date is confirmed OptionSlam begins to track the price of the ATM Straddle. Each day until the earnings date we apply our formula to determine the implied price move in advance. We don't know which way price is going to move after earnings but with this information we have a market based calculation of how far it is expected to move in one direction or the other. The IM (implied move) is a crucial piece of the puzzle when developing trade strategy and positioning. Go here for more information on the Implied Move.