It probably won't yield the best
results in a strong bull market, but it will yield better results than a buy - and - hold strategy in a sideways or bear market.
In theory, call - writing strategies should
lag in strong bull markets but outperform when markets go sideways, rise gradually, or decline.
They should be used with
caution in a strong bull market, as the odds of stocks being called away (and thus capping the upside of a specific stock or portfolio) may be quite high.
In a strong bull market, if you knew it was a strong bull market, you would want to take as much risk as you can, assuming you can escape the next bear market which is usually faster and more vicious.
In a strong bull market, most stocks will rise, even the stocks of weak companies!
Similarly,
in a strong bull market, growth - oriented assets tend to outperform value - oriented holdings.
In a strong bull market, higher volatility stocks tend to outperform lower volatility stocks.
When stocks have been
in a strong bull market, there are just not that many opportunities.