I was thinking though Ghors. Let's say that one had $100,000 in the cd's or some other such interest bearing certificate. Take out the 100,000 and invest it in stock and then sell the covered calls over and over.
I wouldn't think there was a risk as long as the stock went up because one would always have the 100,000 plus the money you sold the calls at. Who cares if the stock went from 30 to 50 dollars as all you are concerned about is not the stock, but a higher percentage of interest.
Now seems to me the only way one would lose is if the price of the stock collapsed and you wouldn't have the 100,000 that you began with. Am I correct or thinking right on that? Isn't that the only way one would lose? .. Thanks. .. nic