The leverage is the increased risk taken on selling premium where the loss can be greater than the reward. If you need to take on massive leverage to slightly do better than buy and hold than not sure it is worth it. If you choose to sell premium and be put heavy then it is not a great thing in 6 months to make money in a bullish market just like a buy and hold is not a genius either. Also not sure what hedge funds have to do with teaching someone here the risks of selling premium month to month on a regular basis and not be cocky about 6 months of returns. The person who he got the strategy from was found to have to hide losses just to show good returns. I wonder why? The lack of appreciation for the risk being undertaken here for these returns is appalling.