Well shiver me timbers. I am a beginner in all of this ... I watched those DVDs last month. After some researching, I found out it was called a covered call strategy.

ASX - Systematic approach to selling premium

.... and I found out more options trading strategies, but all the other strategies are too risky for me, except probably for the collared strategy:

ASX - Protected Covered Write

... but the premium you receive for the written call is reduced by the premium you pay for the bought put.

Anyway, these 2 strategies does not seem to be very risky at all, and am wondering why not many use it.

How can you loose in the above ? With the plain covered call, the stock could go down in value so that you loose in paper your initial purchase because you could not sell the stock until the expiry of the written call. Then why not write another covered call the next month again ( of course at a lower strike price than the previous month since the share price has gone down ) and again and again until you "recover" your initial cost ? What am I missing ?

But if you use the collar, you could not loose at all, although the premium is a lot smaller.

The other strategies are too risky for my profile.