So hereâs the scenario that I have in my head. It seems so simple which is why Iâm sure it wonât work, but I would like to be educated as to why. Why canât you sell the same # of contracts of uncovered Calls and Puts at the same strike price (near or slightly in the money but it shouldnât matter) and hold until expiration. Possible Outcomes 1) Market rises & call exercised: Put expires worthless and you keep the premium, call is exercised so you have to buy the stock and then sell it for a loss, loss is completely or partially covered by the premiums of selling the options 2) Market rises and call not exercised: Keep both premiums 3&4) Same as above but with the market falling instead of rising As an added protection if the stock price moves more than what you have made by selling the options why canât you close out both options postions at that point. In theory the change in intrinsic value of the calls and puts will offset each other and you will be left pocketing the time decay of each. So why won't this work? Intrinsic values won't actually offset like this?