### Comment:
I understand buying the put with the premium you collect on selling the call. But when the index does go down, then will the gain on the put always be enough to cover the lose on the index?

### REPLY:
Not always, but you can play the odds and position the puts in a way consistent with your risk tolerance. 
  
 So think of it more as a stop-gap, or loss maximizer, more than a full replacement insurance package.  Otherwise you will essentially consume your entire profit margin on expired puts.

### END.