Totally agree with you datasponge. The only time you are really risking the original capital is when the price drop significalty on the underlying share. This can be protected against of course utilising LEAPS (although it will reduce you % yield) Certainly if you trading derivitives you need volitilty. Volitility in covered call writing increases your % yield but obviously increases risk of capital loss whilst holding the cover...
I only do it on the US market. cheap online trading and heaps of volume. Able to achieve good yeild without the volitilty of NCP etc....
