An investor who types "covered calls" into an Internet search engine is likely to see a message such as this one: "I Love Covered Calls. I Make 8% -10%  Gains Every Month with Covered Calls and Option Spreads." Apparently, covered calls have moved from hyper-complicated to well-hyped.

Few financial planners believe that any type of investment will deliver returns of 8% to 10% every month. Some planners insist, however, that such a return is possible - on an annual basis - with strategies that include covered calls. "I've been using covered calls since 1982," says Ronald Heakins, founder and president of OakTree Investment Advisors in Pittsburgh. "Counting dividends and capital gains and option premiums, our clients have been able to get annualized returns of 10% to 12%."

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