Young: I am not sure what kind of fundamentals analysis you do but i have heard a similar arguement when crude was at 40 bucks. Back then, selling 60 bucks calls seems like free money. Guess what? Katrina came, the pennies you collect on the options results of the options being 10 bucks in the money. Dont get me wrong, I am not doubting your analysis. The market can remain irrational for longer than you think.