How do we decide when to buy and sell?
Instead of buying stocks, we sell a PUT option on the stock that expires within one month. If the stock price is above the PUT, we keep the option price and sell another PUT. If below, we take possession of the stock.
If we have possession of a stock, we sell a call above the stock price. If the price is above the CALL, the stock is sold and we sell another PUT. If below, we keep the option price and sell another CALL.