Comment by devoutsalsa

Options are a great way to make money until they’re not. Selling covered calls will limit your upside and you’ll miss out on big gains when the stock takes off. Selling covered puts can make you buy a stock as it’s cratering on bad news. I can see the appeal, but it’s too risky for me. I think the typical investor will end up with less in the long run, and there’s a reason covered calls ETFs don’t keep up with the gains of the market, even with dividends reinvested.

Another things that’s easy to over look is being forced to sell your stock when the covered call you sold ends up in the money means you may have to pay taxes on the gains, which also eat into potential upside.