In both my examples, the options were written out of the money. That means the premium is small (because the option is unlikely to be executed - premium is alwa

In both my examples, the options were written out of the money. That means the premium is small (because the option is unlikely to be executed - premium is always largest for at the money options). Whether or not the premium offsets the difference between strike and spot totally depends on the size of the move! If the option starts $10 out of the money with a $5 premium, and it ends up $10 in the money, you've lost $5 whichever way you look at it. Your advice of combining options and stocks is at best a little naive, and at worst will be a disaster for anyone who's not a sophisticated options trader.