Selling covered calls. I am interested in selling covered calls for the Russell 2000. [View all]

It will cost about 250k for a share in the fund. I would sell the calls that expire every two days, two or three times per week.

The fund is not exceptionally volatile. Which is why I choose this. A 10 point gain on 100 shares would result in a gain of $1,000. I would sell calls that are 5 or 10 points out. If they are "called," I would buy to close so as to not pay a tax on the profit. I would make less money than if the option is not called.

If the fund declines in value, which it certainly will at some point, I will sell the next expiration date but at a lower strike price, with the intention of keeping the shares.

Thoughts?