@RhinoInvestor exactly what I do with Whitehaven in RL, rinsed and repeated each month this year. $8 call position expires in July so might all come to an end with share price shooting up. has been a great stock this year for rental / yield and cap gain.

@WINGMAN its certainly ripped in the last week (up about 12% or 90c).

I got caught out a number of times last FY with this strategy when the market was rip-sawing because some bunch of nutters in energy rich jurisdictions were firing things at their neighbours (basically having to roll the covered call up in value and well out in duration such that I now have a bunch of covered calls not expiring for over a year with no real incremental income. I guess the upside is that if the market pulls back they will all expire out of the money and I will get to keep the premium at that point).

I'm interested in your strategy as to whether you have a clear pattern you prefer (eg. one month options or longer term, certain delta, target returns (eg. conservative returns with low probability of option being exercised vs selling options closer to the current price to maximise returns). I've tried a few different things and still haven't really found a reliable low risk (of CGT event) sweet spot.

I've found that the energy stocks offer a pretty good return for this strategy and I have a basket of dirty hydrocarbon producers (that I'm not super proud of) in my SMSF that I am utilising this strategy for. The 15% tax rate in the SMSF makes it much more attractive (as each covered call sold is treated as a short term CGT event). I'm also not super wedded to any of them as I don't expect these cyclical industries are really long term hold multi-baggers). Oil oscillated between high 60's and about 90 per barrel last FY and other forms of energy including coal also seemed to move quite a bit. I've also been running the same game on NHC.

Do you have any other favourites you've found for this strategy?