I am following the same strategy right now. I have my core long investment and any cash I can spare I am buying the Jan 2017 $10 calls. If the stock literally isn't in the $200s by then it will be in the $70s...that is my belief.
superb post gnawkz. this is exactly the strategy I have been employing except I have been using deeper in the money options because they are easier (less expensive) to exercise if necessary. I did have to exercise some calls this past January and therefor put me in an extremely overweight position. I did sell these shares at a later date to get back to an overweight position (instead of extreme) but did buy more calls with the gains to replace the share equivalent.
I have done the same in the past and found it too complicated as well.
people have to understand that unexpected events happen such as 2001 and 2007-2008. you can't easily recover from such events if you are gambling with options. I didn't get back to even from 2007-2008 until last year. you don't appreciate deep in the money calls until you have experienced such disasters. once the calls(if in the money) become out of the money or the calls were originally out of the money and something happens unexpectedly you lose all the money invested. ALL OPTIONS ARE RISKY because they are time constrained. I can't emphasize this enough.
there has been excellent discussion of options trading here the last couple of days but unless you are comfortable being a gambler as I am just buy the shares. watch them for trading signals. JMHO