Example: I own a certain well known, high div yield stock. Yield is 6% per annum. Every 2 months or so, depending on market volatility I sell covered calls. Stock selling for $32. I sell Jan 35s and get a premium of say 50cents. If the stock goes over $35 they take it away but I made the profit and took the premium. If it sits under the strike, I play it again next month or 2. Meanwhile, I am getting the 6% annual div + every mo or 2 a premium equivalent to 1 to 2%. My annual return is staggering. Ain't getting that in any bank.