Cash in Down Market

With covered calls we must be careful in a down market. If a call is sold for a lower strike price to get income, it may be exercised at a loss on the stock or it may have to be bought back at a loss on the call to prevent call out of the stock.

In a down market, I sell covered calls in out months. My target is at least a 10% return and then I buy back the future call to get a return of 4-5%. I place a GTC buy back as-soon-as I sell the future call. NOTE: If the stock reverses and starts back up, I buy the call back for what ever return is available. I am not gready.