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But you aren't guaranteed the market return by holding the ETF if you sell the covered call on it. The covered call limits your upside return. And if you write it far enough OTM to reduce that risk, your premium will be lower as well.

My problem with a covered call strategy is that in order for it to make you more profit then just holding the underlying equity, then just the selling of the calls has to be profitable. But:

-- If you can't consistently make profits just selling the calls, why bother selling any of them?

-- If you can sell calls and be consistently profitable with them, why bother buying the underlying equity?

Keep in mind that the losses on a sell calls only strategy is the very same profits you are willing to throw away on the equity when you sell the covered calls. They can't be significant on one hand and insignificant on the other.
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