The problem is typically the next day the stock goes down and the option collapses. This is an extremely popular approach. News services now sell pagers to alert you to financial news wherever you are. There are two kinds of volatility. Historical volatility is a measure of how much a stock may be up or down one year from now based on past price movement.
Implied volatility is the same measure but is based on the current option price.
High implied volatility typically regresses to historical levels. That means after the news, the stock can stay the same or decline slightly while your option can collapse. For Mr. Gotta Move Fast there's no time to plan a trade. If the broker or guru speaks, he must act immediately or lose out. Too many losing traders don't know what the technical situation in the stock was when they bought the option.