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Originally Posted by jms
Thanks ... Didn't think of it that way. So maybe don't write a covered call when the share price is lower than the original purchase price ??? Question then is, what do you with the stock for that month ? Hmm .... ( Just thinking it through ).
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The Covered-Call Strategy is usually implemented in a flat or uptrending stock. This way the stock price will generally rise between months (or at least over a 2-3mth period). The last couple of years are a great example. Others on this forum have commented that they have been very successful with the CC strategy 
You just have to use the appropriate strategy for the current market conditions. .. Some strategies just won't work all the time.
Happy trading
Take Stigs advice: Read/research forums/websites that trade that strategy and then 'papertrade' it in the live market. You will soon work out how it all works, what the pitfalls are and what the rewards are. Just take things slowly 
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