Build a Covered Short Straddle Strategy

A risky income strategy which increases the yield of a covered call by selling a put for additional income. The put is not covered and causes the risk to nearly double. If the stock drops significantly, this strategy can lose significant money.

Since this strategy involves a short put and call, one will likely be exercised unless the price is at strike A at expiration. Time is helpful to this strategy as the value of the options will decay.