Teva Pharmaceutical Industries Ltd (TEVA)

[JLS]

Because those pennies are compounded.

From my post: If assigned at the end of this week, that 7-trading_day trade will net 7.12% gain.

Think about it: since I always go all-in and sell weekly Calls, the weekly gains at least add up every week if not compounded (meaning the money, if shares are assigned, is reinvested every week). Compounding means the annual net gain is much more than 52 times the weekly gain of 7.12% (which itself is a hell of a gain if you multiply that by 52 weeks).

Compounding: the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time.

Also, did you notice that I raised the strike of the Calls from one week to the next? Pay attention. Details matter.

In addition, I don't think price gets to $17 in a month. There are historical prices between current price and $17. Those concentrations of higher prices are called resistance -- meaning that price will have trouble rising through those levels. But I'll keep making money anyway because I will sell more Calls every week.

Example of compounding:
7% gain over 20 time intervals, not compounded: 7% x 20 = 140%
7% compounded (an exponential function) over 20 time intervals: 287%

But, investing in stock is not a smooth ride. Stock prices go up and go down. So if all I do is hold stock, it might be trading at the same price three months from now as it is trading now. But if I sell Calls every week, that just keeps adding up every week, and I will be investing that money as it comes in.