I just want some inputs on this strategy, e.g. GE : If I bought 100 shares GE, presently trading at $29.20, and sell a call Sep 27.50, asking at this moment $2.85. Excluding commission, I would lock in 9.8% (excluding small dividend in June and Sep) for a period of 5 mths. Worst case scenario would be that GE tanks like a brique, and my break even point would be (29.20 - 2.85) = 26.35, in this case, I would cover my short call, and exit GE, excluding commish, I would win some theta $. If GE continued its rally pass 30$, I will be very zen and be content with my 9.8% profit. Did I forget any traps here? any thoughts? Cheers!!