Sorry to respond this way, but I have you on ignore.
You still have to pay more because it it a debit spread (paying more than you are receiving). The put profit is offset by the falling equity price, no? Not saying it is a bad strategy, just that you need to be right short term or you will lose money ( not much, granted). Besides, you are giving up your upside too.
Losers lose money, that's what losers do!
There is a lot of books teaching know to trade options. This trade is the basic one that they trade and teach at the beginning of most options trainning books. And you state that you have placed ME on ignore?
Ok. The one trade concept I understand saving money on commissions, but how can you come out paying less than the straight equity trade when the put is at the money (pay more) and the call is out of the money (receive less) and the long equity is what it is? If the stock goes down you lose the difference in the premium and commissions, no?
If you pick the right direction, I see where you can make 8%, but you lose 40% on directional selection even if you are a great trader over time, no?
You don't lose you money because the protective put is at the money. If it goes down you get your money back less the cost of the money paid out for the trade. ie $.10 per share
Now you know why I would not trade options on stocks that are below $20 per share. The cost of the trade is to high to cover itself using lower valued stock.
1. Buy long stock, 2. buy protective put at strike price. 3. sell call at higher strike price
You are wanting to have the stock move higher.
This is placed as one order on the trading desk. Fill all or nothing.
The reason that you are not getting your orders filled is you are buying and selling options on the stock market trading platform/trading desk. This is a third party transaction. You need to get an account at Options Express or Options Animal. Your order goes directly to CBOE. Your trade will cost you more but your orders get filled.