Ever since stock options were listed on the Chicago Board Options Exchange in 1973, the most popular and widely practiced option strategy has been “selling covered calls” against stock holdings. On the surface, it can be a very compelling strategy. But it's imperative that this investor fully understand the value of the options he's selling. On a single investment, the investor can profit by selling an undervalued option; but over time, selling options too cheaply will lose money. It's also
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