Ok, but do you ever take profit? When does it go up enough for you to say ok, I'm cashing in. Perhaps you're saving for retirement, so you know you won't need to sell for a few years. You can sell a covered call that is way out in the future, and get a large premium. If you buy UCO now at $6.80, and sell a $10 Jan 2017 call. You'll get a $1.90 premium, meaning your net cost for the UCO will be $4.90. If UCO is over $10 in Jan 2017, you'll have doubled your money, because it went to $10. To double your money without selling covered calls, the $6.80 UCO has to trade at $13.60.The reason why I don't really do covered calls is I hate limiting my upside. I'm an all or none investor.
Suppose UCO goes up to $15. Then you'll be ahead not selling the call, but not by much. On the other hand, if UCO goes down to $5, you'll lose 25% if you don't sell covered calls. If you sell covered calls, and UCO goes down to $5, you'll still be ahead!
Another thing Bruce, what when the stocks up 60% and your calls expire? Yeah you get to keep the lousy premium, but I'm up 60% on my stock. If you invest for income than CC are a good strategy, but if you're looking for aggressive growth not so much.