So you are looking at 32 strikes? Here are the negatives and positives of covered calls:
The positive is that you lower your cost basis by 1.50.
A positve is a nice premium if the stock price goes flat.
The negative is that you wont share in a rise. If the stock ends OE at 34, then you lose out on the trade between 32and 34 but you did get 1.50 premium so not bad. However you will be disappointed if the stock goes to 36.
The next negative is that it will be hard to sell the stock. You cant merely have a stop. You have to buy back your calls before you can sell your stock if there is a fall. If you are holding on a long term basis this is probably not a problem as you will likely hold if the stock drops. The 2 things you cant control are over night gaps as well as un- monitored stock drops. You have to watch it like a hawk if there is a drop.
If you really want a combination that is like selling covered calls, you may consider selling puts. So for instance if you sold a weekly $31 put you also keep the premium if the stock rises and you basically buy the stock for $.75 less than your current basis if the stock drops. (the stock will be put to you)
If your really bullish, what you might do is to sell a call that is further out. You will notice the prices are insane and the premium for far otm calls is high. If you give your covered call a little room like for instance sell a 34, you will have some room to move and also make some money. The big caution is it is hard to unwind your positions when the stock drops. You will see most covered calls are utilized on stocks that don't move a lot. It is tempting because premiums are sky high.
Thanks for the detailed explaination. Making $1.50 (5%) on the stock in a week's time is quite tempting. Since I already own the stock and will repurchase if I get called out. I will take your advice and sell the 33 calls instead. Giving me an additional 1.5 room to grow. 10% is plenty for me! If it goes down, no harm done as I was holding it anyways. I'll just redo this process again for the next week.