<<<I recently sold some January 2012 calls with a strike price of $35 for $0.70 per share. Maybe I will lose some stock in the next 14 months. 0.70 call premium another close to $2 in distributions and $35 for the stock is just over %50 return in 14 months. Are we really going to get more than that???>>>
LOL...sounds like 50% would be a sweet way to go out, if it happens that way.
I have been playing the options from the opposite end. Looking to possible add to my position on pullbacks, I have been selling one and two month out puts. The latest was Dec 2010 $21 puts for 0.55....collecting premium AND getting what I think would be a great deal if APL is put to me at around 15% lower than today's price.
I'd sell calls against my position as well, but I don't want to look that far out in case I do want to sell out, for whatever reason. The closer in calls, closer to ATM, just don't command enough premium though.