COVERED CALL PREMIUMS

CASH FLOWING THE STOCK MARKET.

Here's what I'm looking for in covered calls:
If the stock is around $8 right now, and if the $8 calls out a month, say Sept are about 10% of the same $8 that would be really good. 6% to 10% is good. The $9 call should be around 4-5%, say 40 to 50 cents.
If the option is going for $2, everyone gets excited. The cash flow would be awesome, but the stock is too risky. One just like this awhile ago, looked great from a cash flow point of view, but the stock went down to $1.75 in two days. This was the problem a few years ago. Everyone got mesmerized by these high option premiums.
If the option is going for 20 to 50 cents, it signals a more stable stock, but it's boring. It's not worth doing the trade.
There has to be balance, figuring out the risk and reward. And then don't forget about stop losses on the stock  (at say $7.20 on an $8 stock) or just under a good support level.
I would welcome any questions or comments!