Could someone tell me if they see anything drastically wrong with this strategy:
I'd like to write covered calls on shares I hold in NAB SGB CBA WOW & CML each month for the next 10 months. I'd make sure the strike price was slightly above what I've paid for them each time. I've never traded in puts but my undertanding is that I would then buy a put, say 10 months down the track, for my shares that would give me the right to sell them at a price fairly close to what I had paid for them in the event that any of the shares fell dramatically while at ACH. Am I missing anything? I get bamboozled by the terminology sometiimes. Does this seem a reasonable way to make a profit?
Sorry if this is too green a question.