Every strategy has its disadvantages and the disadvantages of the covered call strategy are:
You must continue to hold your stocks if you want to keep the sold call options.
You are obligated to sell your stocks if the share price rises above the strike price of the sold call options through assignment at expiration.
Covered call sellers get only limited protection while—to a degree—making the owner feel bound to hold on because of the covered call buyer’s right to buy the stock if it recovers.
In reality, though, if a stock price drops dramatically, the covered calls become much cheaper, so the obligation to sell can be bought back for less than the original premium to eliminate the obligation.
The main disadvantage comes from an unexpected upward movement of the price.
I am looking to sell out of money calls,$7 or $9 out of money. The positives i see is that it force me to hold the stock. I figure the longer i hold GNW the higher the stock price. The other positive is that i can get a $100,000 or $200,000 of front and use that many to buy fixed income ETF's