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I too have considered these as a means of supplementing income.

i do a lot of covered calls .

But there is a major trade-off...the risk that you will lose any appreciation in the stock's price.

the risk is that you lose some of the appreciation --

essentially four possibilities:
Stock goes down --you make a couple bucks on the option and you have a stock maybe you would've wanted to sell
Stock stays same (or goes up ,but doesn't get to strike price) --you get the option money and the appreciation

Stock goes up beyond strike -- IMO, worst case becuase you have to make a decision:

either buy back the option ..losing some (maybe most) of the appreciation
or let the option be exercised ..losing some of the appreciation

This risk raises the question: can you predict the direction of the stock's price over the call period. Well, who do you think is on the buy side of the call you've written? Tyically, these buyers are pros who comb the newly sold options, looking for unsophisticated investors selling options into unfavorable (to the seller) markets.

i think all markets are dominated by pros hoping to sucker Fools...
in the case of options, mostly calculating prices mathematically
buyers being ,IMO, a bit more speculator;
sellers trying to hedge their bets.

Hmmm..... having typed all that ,maybe i agree -- maybe too complicated

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