In 1967, Ed Thorp and Sheen Kassouf published a simple hedge in Beat the Market: own the stock, sell overpriced calls (warrants, in their day) against it, and set the ratio so that small moves in the stock roughly cancel out. What’s left is the time decay of the calls you sold.
The result is a wide band of prices where the position makes money. It only loses on a big move, either way, and the premium sets how big that move has to be.
