I try this on QQQ recently + selling put, details ...

I sold ratio covered call 2:1 on some of QQQ position (as an experiment) when QQQ was 529 last week, with a combination of selling put

For example, if I have 100 shares of QQQ, i would sell 2 covered call with March 21 530 strike price, and the premium was $16, At the same time, I sell 1 put with March 21 530 strike price as well, and the premium was $14.

So, in total, the premium i collected was 2*16+14 = $46.

If QQQ continue to rise, my breakeven point would be 530+16+14/2 = 553

If QQQ drops, half of that $46 will protect my downside drawdown, and half of that $46 would allow me to buy additional QQQ at 507. So basically, if QQQ drops from 530 to 507, I am fully protected. Even better, if I dont mind temporaily drop, I can basically buy more QQQ at equialvent of 530-46 = 484, and still keep all the original shares.

The max profit for this strategy is if QQQ magically close near 530 in March, I would collect all of that $46 premium for free:)

This is very useful for index such as QQQ, especially when it approach a local 5th wave high, as the chance for it to break 553 by March, although still there, does not have a high probability.

Even if QQQ does make a breakthough and try to go to 553, it would have to first break the previous high at 539, which is an earlier signal to close these hedge with minimal loss.