Yeah... I've thought about writing some covered calls to generate some extra income. But like I was saying, these irrational bull runs can go on and on for a while. I do think that we are overdue for a correction. The question is when. It's near impossible to time markets.
Obviously with options, you're buying time. You could be dead right, but if the move you are expecting happens one day after expiration, the options have expired worthless. Which is great for the cover calls if the market doesn't hit your strike price, you keep the premium.
But if the market keeps screaming, the underlying security gets called away and you've limited the upside potential. At this point, I've taken some chips off the table to minimize the down side and upped my cash reserves to be ready to buy back in if the market does correct. If the market keeps screaming, I'm still and getting 4%-5% on my cash reserves.