S2,
I looked at covered calls once, but it seems to have low profitability. Maybe you can set me straight. The 18% I mentioned is the best case scenario right? If you don't get them called from you then you actually had a lower percentage in that month than the 18% annual. The next month the best case is still the 18% annual going forward assuming the ratios stay the same. In other words, you get far less than 18% if the stock starts falling below the strike price. Sure, you get to lower your basis, but you still net a smaller return.
Does that make sense or am I missing something?
fm