Earn $100/week on each $10k invested -- so for example
CHK was at $5 on Wed last week -- so I bought 4000 shares and sold 40 $5/calls for $.12 -- $480 for $20k well covering the objective of $100 per $10k -- CHK closed on Fri at $5.21 so the shares were called away and I get my $20k back plus the $480 premiums
Naked puts work the same -- also sold 20 CHK $5/put but to get a decent premium I sold the 03/31 expiration for $.14 -- $280 for two weeks for $10k of maintenance requirement (capital restriction)
So, if you have $100k to play with, its a $50k plus return over the year
Chicken feed to the big traders, but it keeps me happy
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