When you write covered calls, you produce greater profits by writing six two-month covered calls per year, than you will realize writing one 12-month covered call per year. Time decay for further-out options is quite slow, so writing options more than few months away is equal to lost time. Based solely on option profits, focusing on short-term ATM or OTM contracts produces annualized double-digit returns.
An example of the covered call and how to identify profit, loss and breakeven points: You pu






