This appeared in the blogosphere;

Stock and Option Trades
(Advanced option strategies)
$7,000 Bonus
May 6th, 2008 4:12 am

One of our members recently asked us a question regarding generating monthly income while mitigating risk, and so we thought it might prove helpful to share some of our thoughts, particularly given the recent run up in equity prices. The member had 5,000 shares of company stock and was concerned the stock would decline if the overall market fell. At the same time, he didn’t want to sell his stock in case the stock managed to creep higher. While he thought some upside was possible, he felt it was limited. For every situation, an optimal strategy exists and for this situation, the Covered Call fit the bill! While Covered Calls may be applied in myriad ways, the strategy that best met all the stated objectives was the at-the-money Covered Call. The at-the-money Covered Call simply comprises opening short call options at a strike

A couple of points;

*Holder wanted to KEEP his stock
*Concerned that market and his stock might fall [wanted to mitigate risk]
*Felt upside was limited
*Wanted to generate income

Was a COVERED CALL ATM the best position to initiate?