are covered calls risky 
covered calls are considered relatively low risk covered calls however would limit any further upside profit potential if the stock continued to rise and would not protect much from a drop in the stock price 3 note that unlike covered calls call sellers that do not own an equivalent amount in the underlying shares are naked call writers naked short calls have theoretically unlimited loss potential if the underlying security rises 4can i use covered calls in my ira depending on the custodian of your ira and your eligibility to trade options with them yes there are also certain advantages to using covered calls in an ira the possibility of triggering a reportable capital gain makes covered call writing a good strategy for either a traditional or roth ira investors can buy back the stock at an appropriate price without having to worry about tax consequences as well as generate additional income that can either be taken as distributions or reinvested 