This guy explains it pretty good. It's funny he mentions GE as that is a stock I'm currently using this on. As well as Khol's but with KSS I'm making sure I retain at least 100 shares long. I'm really bullish on KSS. I can't remember if he mentions it. Be mindful that you don't let your shares get called away if a stock is going Ex-Div. Skip a week selling the covered call during that week. Or not! Maybe the premium is more than the Div? You'll have to watch.