Covered call writing is a synthetic uncovered put write. Those alleged people making 5% per week writing covered calls are in deep doo doo if the stock goes down. 4Q
Covered calls are no more a loser's game than is any other strategy. It's all about due diligence, risk assessment, and sticking to a good plan. Selling calls on diversified, well-chosen stocks is, IMHO, a very conservative means of wealth building. Now, if one is looking for a stable 5% a month ROR from this strategy or any other, one is CRAZY.