Yes that’s correct sadj89. I have no added risk over those who...

Yes that’s correct sadj89. I have no added risk over those who just buy OOO outright. The only way I would be worse off than those investing in OOO is if the price sky-rockets over that next month. In that scenario, well I bought my shares at $17.77, I then sell them at $19.00 & in addition to that, I received $0.58 for selling the call option. So I have ended up making 10.1% for the month!

You mentioned risk associated with the currency risk. That all depends on your broker. I have mine structured so that all my money stays in AUD (by choice). I deposit AUD to my trading account and it stays in AUD. I then have the ability to borrow money in USD with that collateral. So I have a negative USD balance and a positive AUD balance. I borrow money in the US at the rate of just 1.62% pa. My AUD earns me interest at the rate of 1.8% pa so I don’t really incur any cost in this process (in fact I make money).

Even if I did not want to borrow the money, then I can easily convert the money in the account into USD. If I can generate 3% as per the above example per month, from selling options, that is going to more than compensate me for any risk associated with the currency!