In my opinion this is what it sounds like. Analyze the stock, and especially the chart. Look for a fairly volatile play, and sell the covered call or put when you think the market has either hit a top or bottom for a set duration of time. Make sure it's more volatile so you can validate receiving a higher premium. While using technical analysis to make sure you're timing things right regardless of what the Greeks say about current volatility. I saw a lot of people selling puts near Dow 9,600. Due to the higher volatility they earned a huge premium. This all happened during the month of July. While that happened the market just happened to rally tremendously, and in turn the put holders positions expired worthless. Those people who sold puts in turn bought calls as the market rallied with the premiums they earned. Making a large profit, but under what criteria made it so appealing for them to do so. How did they know that those put premiums were over priced, and obviously the technical analysis that went into it is something I already understand. Because I bought a fair amount of calls while the bullish engulfing candle stick pattern occurred. On top of earnings anticipation and the double star bottom. My biggest dilemma is how do I sell an over priced put right before the market is about to reverse, and by which that put premium starts to dramatically lower in value. Putting me at an advantage. Greeks is what determines the value of puts, and likewise determining how much it's worth, and why it's worth that much has to be a part of the equation as to why some of these brilliant traders made those type of trades.
Historical volatility. HV and IV are measured differently, and HV is the past volatility, IV is a gauge of expected future volatility. HV may have an influence on IV or it may have little impact on IV.
You are not the only one with this dilemma. Greeks do NOT determine the value of options! They are just option sensitivities to different pricing factors.
If your timing is any good, why waste your time with covered options? If it's a top, sell the stock that you own (or short it). Conversely for the bottom. If you're going to do covered positions, base them on the stock's behavior not the level of premium.
My only criteria is the prem gets me to my price tgt. Covered options are just spreads. Trade them accordingly.