- You buy 1.000 shares.
- You sell a 2-month option (let say a call)
- You buy a 1-month option (let say a put)
The time factor of the option impacts price of the option. So the one month difference between the two option prices above is your profit with no risk.
What if somebody "calls" your shares? Nothing, you still pay as much money for it as you have purchased it. You can use various exit strategies one the 1-month option start expiring. You can decide to exercise it, sell the 2-month option, etc. maximizing your profits or future adantages.
There are variations of this strategy. Like doing it without purchasing shares or both of the options. However, these entail a hire level of risk.
Here is a possible various on this strategy. You buy a one-year put option and keep selling 1-month call options till you make profit.
This strategy is most profitable in a non-trending share.