Since the VIX is nerve wracking, lots of folks are watching the roller coaster from the sidelines. I am thinking to get in with some Covered Leaps on SOLID stocks which I would like to own in the long run for example JAN 2010 is 456 days away. ie. 1.3 years. selling BP 40 Jan 2010 covered call is giving me Strike/ Symbol / Bid / Ask Net Price /Premium /Premium % of Strike / Return Assigned 40.00 / .WAOAH/ 8.10/ 8.90/ 34.42 / 5.58 / 13.95% / 16.21% 16% for 15 months. ie. 12% APY. plus BP gives 8% dividend. Can anyone comment on this strategy. get in and hold it .if it tanks. atleast we get protected signficantly on the downside for some of the more volatile, the rewards and downside protection is much more MOS 25 strike covered call. protection till 18. Strike / Symbol / Bid /Ask / Net Price/ Premium /Premium % of Strike / Return Assigned 25.00 / .LXWAE / 17.40/ 18.40/ 18.27 / 6.73 / 26.92% / 36.84% I am thinking to do this for SOLID dividend paying stocks. hence the Deep ITM covered calls. If there is no dividend , we can do the same by selling out of the money naked or cash secured puts. any comments. and suggestions to this strategy.