Covered Calls the Fund Way

If you've been in the investing world for a while, you've probably heard about -- and dabbled with -- writing covered call options on stocks.

When you write a covered call against a stock you own, you sell the right to purchase your shares for a specified strike price at or before a specified future date. You collect a premium -- the price of the option -- for giving up this right.

And why? The main reason is to generate some current income. Those returns can be juicy -- 2% to 3% per month or more when things work out just right.

My point here isn't to give a full course on covered call writing; there are plenty of resources out there. ...