Hey everyone,

I'm just getting comfortable with selling covered calls, particularly on $F, & was wondering if this actually, despite being an options trade, could reduce volatility for one's account value (at least in some cases).

In particular, I sold 7x 4/9 14c. Ford's been more volatile in the last few months than historically, I believe, but this trade & the strategy in general don't strike me as particularly risky. Ford being Ford, I can't imagine it breaking $15.50 (a 22% gain from today's close in 4 weeks) without some huge news. So while I'm limited on upside, it's likely minimal, and this acts as a hedge on declines as well. If I have to sell out of my position, I expect it'll be near the expiry date & so I'll be able to re-enter, having made a solid gain.

Please let me know if there's anything I'm missing with the above logic.

Also, are companies that trade like Ford not excellent candidates for selling calls? Good appreciation prospects from here as an EV/recovery play, but don't move 50% on a monthly basis? Especially when the dividend is reinstated, being able to see slow gains quarterly payouts & collecting premium seems like a win-win for the time being.

Thanks for reading!