Hi GL, my experience is that it's best to sell calls over stock you already own so not sure if you mean to purchase stock specifically for this purpose or use it as an additional income strategy on an existing investment. One needs to understand how options work, imo, as they are tricky little beasts. The other thing I have found is that many Aussie ETOs can struggle with liquidity and the top 10 or so Aussie stocks are probably the best. I used to find liquidity problems at times even with them, however, I haven't checked them for a while as my interest now lies in options on the XJO index.
Some seminar companies suggest the purchase (even legeraging heavily) of shares specifically for the purpose of covered calls, however and again in my experience, you can do the same with all option strategies and with much less brokerage expense. A covered call is the synthetic of a naked put which has enormous downside risk, so it makes additional leverage highly risky. I was taught this at a seminar many years ago but discovered it was a good money making strategy for the broker getting fees on stock trades while the trader takes all the risk...
