I've got a buddy who has been playing the markets recently and because I know little about market strategy, he fills me in on what he's learning. He's way in the black over the past few months using straddle/strangle strategies for top company stocks right before earnings reports. Last week he put down $600 and got out with $1k doing this (I think he used this on Tesla, Apple, and Amazon who all had earnings reports).

He's convinced that it is basically a win/win strategy. Of course, win/wins don't exist when it comes to stocks, but it seems like a pretty safe bet; from what I understand the only way you lose is if the stock doesn't move. I'm wondering what the pitfalls that I don't see are.