Comfort with Covered Calls?

[hendi_alex]

As posted earlier, I don't sell calls in my small but growing long term dividend portfolio. I do know investors who do sell some calls, but it is relegated to 'trading around the edges', basically buying shares in excess of a core full weighting and then selling out of the money calls until the excess shares get taken out. Then either selling an equal value of puts or waiting until the shares move back into the buy range. Swinging between calls and puts for a set position can generate a very nice income stream, especially during times that the share price is range bound for an extended period. IMO using a portion of the investment dollars to take advantage of, to trade the volatility, can increase performance, as long as the play is limited to stocks that the investor would normally want to hold long term anyway, and provided that the activity doesn't get weighting stretched to over sized extremes.