Before u buy stocks ABC=10, u should sell put first.
For example :
case 1:
If stocks goes up=12, u make $ on put.
case 2:
If stocks goes down=8, u can buy stocks back=10, u will not lose anything on your put.
case 3:
If stocks goes up to 15, u sell covered call with strik price=15 and earn income each month.
For example :
case 1:
If stocks goes up=12, u make $ on put.
case 2:
If stocks goes down=8, u can buy stocks back=10, u will not lose anything on your put.
case 3:
If stocks goes up to 15, u sell covered call with strik price=15 and earn income each month.