I want to trade aggresivly weekly IWM covered calls. This is what I have started: I bought 100 shares 0f IWM at 76.0 and immediately sold a call at 76 for a premium of $110. So my net cost is 76-1.1 = 74.9. The option will expire on 20th Jan. If the market remains above 76 . I will do nothing and allow my stock to be called away. If the market is falling , later on I will put a stop sell on my stock at 74.9 thereby breaking even. I will be left with naked option which will expire worthless. In a week if market starts going up I will have to buy back stock at 76. Buying and selling commission is not important as IB charges only $1. The idea is that I will never have a stock which going down and down. I am writing this here so that if there is a better way to do this , please kindly mention this. Thanks so much.