Imagine if you buy a share for 16 dollar, and you rent it out for 40 cents. So you donât lose any money unless the share depreciates below 15.60, you earn money instead. At the same time you buy a put option for maybe 20 cents that enables you to sell the share automatically if it depreciates below 15.60. The return is 40-20= 20 cent per share and you have minimized the risks dramatically. And if you have 5000 shares worth 16 dollar you earn the premium received + Difference (if any, ) Between Strike Price and Stock purchase Price, assuming the strike price is above the stock purhcase prise. The profit is limited, but no risks? Is it really this easy to earn money through this method, or is there a downside to it or something i havn't thought of(i supect you can't sell the share automatically if it reach 15.60, since that might create a problem when you write a call option contract ) Or which methiod has best risk vs reward?