You have 100 shares of the stock/etf along with the Call & Put. 2 examples: (QQQ @ 293.48) 1-Price closes @ 300 100 Shares ... called @ 295 = 295-293.48 = 1.52 x 100 = $152 profit Short 295 C @ 28.68 ... = $2,868 profit Long 295 P @ 27.50 ... expires worthless = $2,750 loss 152+2,868-2,750 = $270 profit 2-Price closes @ 250 100 Shares ... 293.48-250 = 43.48 x 100 = $4,348 loss Short 295 C @ 28.68 ... expires worthless = $2,868 profit Long 295 P @ 27.50 ... 295-250 = 45-27.50 = 17.50 = $1,750 profit (4,348) + 2,868 + 1,750 = $270 profit