Hi Lexi, One thing I like about covered calls is that I have terrible experience in playing call/puts naked. About 7 years ago I put about $25k in to two accounts over about three years. One account I solely do naked options on. The other I do not do any naked options and only do covered calls and long positions.
Today the first account has a balance of $16,000. The second account has a balance of $165,000. That tells me something. "Joe Stocks you aren't a bad trader but you suck at trading options by themselves!"
Needless to say I have changed my strategy on the first account. After the first of the year when the balance was about $14,500 I switched to covered calls. I have one 09' leap option left in the account, and can't wait until it expires. I does remind to stay away from straight options. It is a Jan 09' $25 leap call for CFC. Today it is basically worthless.
Good luck with yours.
