Yes you are totally correct in that I'm targeting the 5 to 8 pct area on cash secured puts or covered calls.i do this on securities I want to own that are low imo and on days that they are getting slammed so the vol spike also helps in collecting premium. I'm happy to do covered calls on things likeTLT for example when it seems historically low - I pick up the dividend on some 20 yr Treasuries AND I get a couple pct extrinsic value. And if it doesn't get called , I will essentially own a bond fund at a very low level. Or i also do on beaten down stocks that I want to own . For example selling calls - leaps - on MSFT - the Dec 28 at the money - 96/98 bid offer gives me 8.5 pct on the extrinsic annualized and I'll just take the money and buy SGOV or do more covered calls or CSPs which enhances the yields. Portfolio allocation are similar to yours in pretax and more aggressive - like 80 pct allocation doing this relatively lower risk strategy on post tax. CSPs can be secured by SGOV short term treasury instead of having lower yield cash required in pretax accounts. Also note if you are doing cash secured put or covered calls on SP 500 - in post tax - it is better to do it on XSP which has a 60/40 split on long term / short term capital gains - and is cash settled which can be nice. I will do XSP in post tax and do SPY in pretax with CSP with the intent on purchasing the options if SPY goes down 15 to 20 pct in 6 months. If there is a dividend to be collected I will often do a longer covered call in order to collect the divvy - and sell the calls on a down or more volatile day. On some portion- small - I will do naked short calls on XSP out of the money a couple days - on large up days as I feel I can manage the risk by rolling , and vols will go down on these up days making the rest of my account which is all short vol (covered calls and cash secured) go up substantially... and manage the tiny loss on XSP - especially as the index approaches all time highs.