I'm sure this has been discussed somewhere but I haven't seen it. Let's say you decide on a strategy to write covered calls on the QQQQ. You buy them today at 39.40 and sell Jun 40 calls at .60. In June it has gone to 40.50 so you get called. You got the premium of .60 plus .60 on the underlying. You then buy again at 40.50, so you use up 1.10 of your 1.20 profit. If you keep doing this with the same results you will wind up chasing the QQQQ's up with little or no profit after commisions. Has anyone studied this? If so, have they analyzed what happens when this is applied to different stocks? Say instead of QQQQ you start with stock XYZ. You make a little profit but decide next time to buy stock ABC, which has just increased by a similar amount. Is the result the same? I'm just wondering if you actually make anyting with this strategy in a slowly rising market.