This is completely what Schwab said about covered calls. When do you use a covered call? Investors typically write covered calls when they have a neutral to slightly bullish sentiment. In many cases, the best time to sell covered calls is either at the time a long equity position is established (buy/write), or once the equity position has already begun to move in your favor. When establishing a covered call position, most investors sell options with a strike price that is at-the-money (ATM) or slightly out-of-the-money (OTM). If you select OTM covered calls and the stock remains flat or declines in value, the options should eventually expire worthless, and you'll get to keep the premium you received when they were sold without further obligation. If you select ATM covered calls and the stock declines in value, they too should expire worthless and the outcome is essentially the same. If the stock appreciates in value above the strike price, you'll probably have your stock called away (assigned) at the strike price, either prior to or at expiration. This may be a good thing. If you sold ATM or OTM calls, the trade will generally be profitable. Unless your options are deep in-the-money (ITM), that profit will usually exceed the one you would have earned if you had bought the stock outright and sold it at the appreciated price. It is also the maximum profit that can be earned on a covered call trade. I have traded covered calls at Schwab and Fidelity for over 20 years. They know what they are doing and saying!! In your concern, they are talking about the option money received for the option (which is essentially the same)...True statement. They are talking about the option money (for beginners). They are NOT talking about the underlying value of the stock!! Maybe they should have talked about the risk associated with the option. Don't you think that is elsewhere in their paperwork?? You don't think Schwab's 20+ attorneys (specialized finance/stock/option attorneys) would review everything they write?? Oh, and once or twice a year, I will get updates to their trading agreements...Made and reviewed by their attorneys. Disclaimer...I own stock in Schwab. I feel a lot of generational money will move down to younger people who will open Schwab accounts. When interest rates rise, Schwab should do very well on money market funds, Schwab Bank, and using the float. If you wish, you can read ALL the disclaimers on their option trading...I am sure over 30 pages. I don't need to...