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If the market drops below $50, both the customer earns the $4 collected in premiums. This is an offset to the cost of the stock of $48, for a net cost of $44. Thus, the customer will breakeven if the stock drops to $44. Below this, the customer loses on the stock position, with a maximum downside loss of $4,400.

If the market rises above $50, both calls will be exercised. On the cover call, the costumer will gain 2 points on the stock, in addition to gaining two points in premiums, for a gain of 4 points. On the naked call, the customer has collected premiums of 2 points. Thus, as the market rises above $50, the customer can afford to lose $6oo ($400 +$200), and still breakeven. He will break even at the upside at $50 + 6 +56. Above this price he will lose money, with potentially unlimited loss.

Simplification for means of regurgitation, please and thank you.