What is the purpose of this article?
This is the second article in a series that I am planning to write about option strategies. My objective for these publications is sharing my knowledge and contributing to making the markets more efficient.
The first article, Option Strategies: Earning Dividends From Non-Dividend-Paying Companies, showed how we can use writing naked put options to earn extra income that behaves as a dividend from an investment perspective. This article looks at a combination of writing call and put options simultaneously to benefit from the expectation that the stock