Current Events > Covered Calls - Talk me out of it

(+) Yeah! (+)

Last few days I really took the time to understand covered calls/puts and I need someone to point out the error of my thinking.

So, I bought 100 shares in October @ $4.50, the stock currently trades @ $6.37, so I am currently sitting pretty at a 41% return. I feel strong about the stock growing to the $10-15 mark a year or so down the line, and would like to really put more money in at the $4.50-5 mark.

Now previously I would just set a limit price and hope that I eventually get there. I'm now realizing that was the most foolish way of doing it and I should just be selling puts @ $5 mark.

So, I'm currently selling puts @ $5 and selling a call @ 12.50 which really just feels like i'm getting free money to do what I was doing anyway. I need someone to point out some kind of flaw in my logic. Because I really feel like I had an epiphany and need to be grounded

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