Help understanding Hedging with Options.

Hey guys! So, this is what I have so far, please help me understand if this is right or how to make it better:

1 – Enter a long position on your chosen security.
2 – Buy puts to hedge it: for example, if I'm willing to tolerate a 10% loss I buy puts 10% out of the money for 6 months away. These can be rolled over when they're 2 to 1.5 months away. Playing around with an improptu spreadsheet, I see that the cost of doing this is around 8% to 15% per year.
3 – Find what Call option would cover this cost, with a date a year away, and sell that covered call. Now I have capped my maximum losses, at the expense of capping my maximum gains.

Bear case: the security drops heavily in price, my protective put that I bought incresases in value and hedges the losses on my principal, the call that I sold lowers in value and I can buy it back for pennies or let it expire worthless. I have the option to roll over my hedge, or simple sell both the hedge and my position with minimal loss.

Bull case: the security grows heavily in price, my call that I sold to cover the hedge costs gets triggered, my shares are called away and I have made money. My protective puts expire worthless. I still have the option or rolling my calls forward further ahead in the hopes of getting a better deal.

Sideways case: the security trades within both my strike prices. If it grows slightly, I have some unrealized gains, if it decreases slightly I have unrealized losses. The cost of rolling forward my hedge stays roughly the same, I keep paying it by rolling forward my calls, waiting for my investment thesis to materialize.

Whether this is profitable to do or not, will depend on the risk/reward ratio of my capped maximum loss vs my capped maximum gain. But I've run some numbers and with some propper rollovers it seems it's easy enough to find oportunities with a 2 to 1 ratio.

Is this what hedge funds do? Am I missing something? what would be the worst case scenario? Am I overcomplicating something?
Can you recommend where I can read/watch more about how to do this properly?