[thwang99]

Hi all,

For those of you who try to generate income from covered calls, do you sell in the money or out of the money calls?

I've recently started setting aside some funds to try this, with a goal of generating a return of 20-40% per year. I try and find stocks where selling the covered calls generates 10-15% in 2-4 months. When doing this, what should I look for?

Should I only sell to open in the money or out of the money calls? In the money has the benefit of providing some slight cushion in case the stock falls. Out of the money has the potential for some small capital gains if the stock rises in price.

Anyways, hopefully someone out there uses covered calls as part of their strategy and can help me out here! [img]/images/graemlins/smile.gif[/img] Thx in advance.

- Tony