Options question....

[cwsiggy]

A friend owns many shares of ORCL. He thinks it's going nowhere for quite a while. All the shares are in his 401K.
Can he write calls against this position for some income while ORCL flatlines till the cows come home.????? If the stock rallies and he gets "called", can he deliver the shares out of the 401k account sans penalty or at all??
Is it dependant on what his plan says??