Covered Call, page-5

Ive done many Covered Call Option trades similar to what you discribed, in the past my only downfall is if my stock fell alot in price all I had was the call premium and the dividends to hedge my downside.

I didnt know a privave trader can do covered calls with selling naked Warrants against stock held. I thought a private trader could only do that with Call options ETOs etc.

So Im Intersted in this topc as Ive done naked puts as well, meaning I would have to buy at the strike price if the stock trades below the naked put stike price at expiry.

Generally I would only ever sell a naked put for an expiry just prior to dividend ex date. So if I was assigned on the naked Put, I will soon get the Dividend and also the franking credit. So these factors would have some hedge on the risk.

Chippy