Covered calls are a great strategy to add to any portfolio and can offer enhanced yield from stock holdings, in some cases, that can be a significant increase. To trade a covered call we need to own (or buy) 100 shares of a stock and then sell a call option against that stock position. The goal is to generate income from the stock holding in addition to any dividends. The premium received from selling the call also covers a small decline in the stock price. However, the trade off is that stock gains are limited above the call option strike price. High volatility stocks have the highest return …