Its fine as long as you can get a decent premium which you've studied prior to buying the stock ~ The problem arises when the stock takes a severe drop After Hours on a Fri and bad news on the stock, economy, or political/world strife hits the fan and the shares opens even lower on Monday ~ You can buy to close, dump the stock, make a little on the CC premium and take a bath on the stock OR stay the course and keep the stock ~ If the stock doesn't recover and continues to move down so do CC premiums (they become less attractive with lower priced stocks)~ You know this but newbies might not ~ Its easy to get trapped if you don't know what you are doing ~
On these very message boards I have shown trough weekly RECAPS how to pocket $200 on AAPL with a cost basis of $600 since 2012,,,,it fell to $400-..I showed how to walk down the sale of these calls using time then close them out and walk them up.
This year I did the same thing with GOOG...pocketing $120 through two trades..sale of the Jan 2014 $900 calls then the 2015 $900 calls.
Recently, I suggested selling the FB Jan 2015 $50 calls for $11 or the Jan 2014 $50 calls for $5.50
I have done the same with a few stocks - mostly GE, GLNG and ABX. I have looked at NYCB several times, but can't get a reasonable premium. Another strategy I use is, when the stock reaches a level that I think it can't sustain, I sell a call at roughly 10% higher price. For example, if Seadrill (SDRL) gets to $55 I will sell a $60 or $65 call fairly far out.