I think those of you selling covered calls for small profits along the way are playing with fire you don't understand. Everything is hunky-dory until it's not. Yes, I'm talking about having your shares called away at a price you claim you would be happy with (but that is only true until you see what could have been). I've seen the premiums you are able to collect by doing this and they are so small it's laughable. As you collect your regular tiny profits, you might want to pray to the God of your choice that volatility to the upside won't, at some point, surprise you.
Here's an interesting article about a guy I actually respect even though he basically engages in a form of short-selling. But he has used his knowledge of market disruptions and volatility to profit from the things the market gets wrong. And it's a lot like what you guys selling covered calls are doing (except in reverse). Only in this case, the double reverses don't make a positive. Boy, that was confusing but I think if you read the article you will understand why, even as someone who believes markets go up over time and shouldn't be bet against, I basically respect what he's doing, while I don't think the selling of covered calls is a wise choice on a stock like TSLA:
How A Goat Farmer Built A Doomsday Machine That Just Booked A 4,144% Return
It's interesting reading for anyone wanting a better understanding of markets. When I said it's the "reverse", I mean he's
paying a regular small premium to have a shot at the big payday that he knows will come due to volatility and the way the overall market responds to negative disruptions. The big payday covers all the small losses and then some. I respect him because he's got a grasp on the mathematics and odds of it all so it works out. I think you guys are on the wrong end of the bet in the long run.
