One of the stocks I have been watching, PKD, made a nice move today, call premium was good, so I made a trade. I bought the stock for $9.65 and sold the May $10 call for $.65.
This give an uncalled return of 5.6% if uncalled and about 9% if called, 58 days to expiration.
I have been trading covered calls and writing about the trades for about 5 months now. My strategy is evolving as I make trades, especially as I make losing trades! I now try to find the stocks with high implied volatility that appear to be more stable than the IV numbers indicate. I look at things like profitability, PE, growth rates, and what industry they are in. I now use the volatility scanner to find the high volatility stocks in the price ranges I want to trade, then analyze the companies for more stable (relatively speaking) growing companies hidden in the garbage.
I am also looking for out-of-the-money trades to either give me a return boost if called, or the opportunity to sell additional calls on the same stock. The outcome to avoid is a stock that falls so far you are writing calls with a strike below your purchase price. Ouch! See my posts on ENCY, EEE, and MED.
I have found one bad trade has had losses equal to the profits of three good ones. I need to increase the ratio of good to bad trades, and work harder to limit my losses.