Tips

If the underlying stock soars, you're selling away the shares you own via your calls, for a profit. You miss upside if it soars above your range. If the stock falls enough, you'll buy more shares via your puts, for a considerably lower net buy price given what the straddle or strangle paid you. So, you just need to be ready to buy more shares if they fall sharply (and then wait for a rebound), or sell your existing shares if they go higher than your range, selling for a profit.

The nice thing about writing good covered straddles or strangles is that they'll have you buying more shares cheaply, or selling your existing shares at a good sell price -- or simply earning good income if the stock stays in a range.