I'd recommend you only sell calls were you are getting paid enough for your loss of opportunity for capital gains. Exactly right!Option pricing is not driven by interest rates so much as by volatility, strike price and time to expiration. Volatility tends to be low in oversold or rising markets and high in overbought or toppy markets. The Black-Scholes option pricing model does not take into account market direction. When markets are rising volatility is low making options cheap and that problem is compounded for the seller by the higher likelihood of having the stock called away as the market rises, a fact ignored by the Black-Scholes option pricing model.The OP is right, bull markets are generally not a good time to sell covered calls.Denny Schlesinger
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