An option trader told me that he uses the following strategy. Please tell me what do you think, and whether or not this strategy will work, since I am not sure: Suppose the stock price is 20. You should buy 1 call for a strike price of 22, and one put for a strike price of 18 assuming that these strike prices have a high delta. You should buy these calls and puts 3-4 weeks before the quarterly earnings report of the company, with an expiration date of 4 months. You should choose the underlying stock based on volatility. Now when the quarterly report comes out, and if there is a movement, whether up or down, you will make money. Suppose there is no movement, then you immediately sell your call and put with 3 months still remaining before its expiration date, and you will be able to get 80-85% of your investment back due to time value of money. Please comment. Is this a valid strategy? Does it work?