that would be my ideal situation. learn how to write covered calls, iron condors, double calendar spreads or what have you and collect 4-7%/month. with a $100k account i could make a decent living. but i'd have to watch out for large volatility spikes like we've been having currently and adjust my strategies accordingly.
The learning of and application of rules in covered calls have increased profits, increased a higher probability outcome, than the other methods...in the right market. For a while I though credit spreads were the ticket. Perhaps now debit speads makes sense; with a straddle on to insure. Covered calls are the best investment strategy, by far, that I've learned. Made me so much more aware. Built some confidence.
LOL. "Adjust your strategies accordingly?" Did your options broker give you a crystal ball telling you what the VIX is going to do next week? All these strategies are a nice intellectual challenge and look good on paper. But in the real world, you'll have the fun of trying to unwind a position that's collapsing under you and wiping out your last 12 months of easy-monthly-option-income. I'll pass along a tip from an experienced floor trader that I was given years ago when I asked him why I couldn't make that regular easy-monthly-options-income on a consistent basis. "What's the problem with my plan?" I asked. "The problem with your plan," he said, "Is that shit happens." And he was right. It does. And it did.
No, I use the equities. Options would be great for pairs trading if you had a knack for identifying moves large enough to overcome the slippage and decay. I don't. Shorter term options would be better if your timing is good. More bang for the buck.
The problem with covered calls is the poor R/R ratio. Eat peanuts, shit like an elephant If one is a buy and hold type who rides it out come hell or high water, CC's are acceptable for add'l yield. But for a learning experience, tho a bit more complex, IMO, spreads are a better starting point for a noob ready to dip. Worst case scenario is a few pt loss unlike a stock crashing after bad earnings report or in a bear like '07-'09.