Lets someone is semi risk averse, what that means is that person cant just buy SPY and hold it forever, the person will panic during market drops. I believe that is the vast majority of investors out there, in fact, some studies show people make 2% a year against 8% of mutual funds due these emotional tendencies. But if the person buys good dividend paying stocks and supplements that income through call writing, now all the sudden the person finds that through that extra income (say 5-6% a year of div+premiums) then that person can pacify that tendency to want to sell during market drops, specially as that person accumulates dividends and premiums over time, it gives them the sense that the stock is a "cash cow" and its not a big deal to see a temporary drop. All of the sudden that huge underperformance versus the index, turns into a small underperformance. Sure, that investor would probably be better off just buying those stocks and holding it no matter what, due the trading costs and taxes involved with covered calls, but that ignores those sales made at the market lows when emotions take place, that is the biggest cost of all. Covered call writing looks to me like a great strategy that should be implemented by a lot of people, instead of trying to force people into doing something that have proven unable to do like economists and personal financers seem to be doing.