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Hi, Mawhinney,

I did covered calls for a couple years, but made the mistake of continuing in the bear market. In a stable or growing market, if you watch your stocks closely, you can trade cash flow for the possibility of riding it up. You also can watch the stock drop, think "it'll change before the option date," and ride it down, down, down. Then the premium you got for selling the option looks pretty puny.

Covered calls can be a conservative way to handle some of your investments, but you need to learn as much as possible, paper trade until you get comfortable, and maybe by then the market will be more friendly.

Good luck!

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