rjm77me's Blog : Options double edge sword = Up date on covered call monthly income

Covered calls are one way for creating extra monthly income.
My way of writing a covered call is as follows

I write current month out of money calls on stocks moving side ways or with slightly bullish bias. I normally wait for an up day to write covered calls. This brings in few extra dollars to you account.

Happy situation - Say the stocks rises more then your projection and is above your strike price. There is still time left in the option sold by me. I protect my self by buying calls for same strike price for the next month. This way if the stock rises further, I am able to capture the time decay for the current month and participate in the stocks up tick or upside moment. The risk lies if the stock reverses and starts moving down. For this month this has worked for me. If stock reveres one can protect by selling the stock. One is still covered due to existing calendar spread in your portfolio.

Has any one tried this to protected covered call positions or any other way to participate in the stocks up side?