Im Very new to the market and i am currently looking at option trading.
I just want to know if this will work out ?
i have 100 stocks of BHP at 27.00 = 2700
I then sell a covered call at 19.00 which pays = 8.535 << true figure
I now have the premium of $853
I also buy a put at 26 which costs 0.475 << true figure
If the price goes up my shares get exercised at 19 that gives me a profit because the real cost of the shares are ( 18.465) i rebuy the shares at their price then sell them with the put option i still own
If the price stays the same _ same scenario
IF the price goes down i win
If price goes below 18.465 i lose
Am i not taking something into consideration when calculating ?