Covered Calls

[farooq]

No you have all the risk minus premium you received.
Yes if price stay remain under your strike price all time during the period then buyer of option can not take away your shares.
Your risk is more that is why you are making such a higher rate of return.
Options have three component,
1- Intrinsic Value suppose stock is 52.50 and you selling 50 $ strike then there is 2.50 intrinsic value, If you are selling 57.50 then option have no intrinsic value.
2- Time premium how long your capital is tied up and how much interest it cost to hold so many shares.
3- Volatility if it is high premium is high if it is low then premium is low.

I hope it help.