Step one is not picking annualised yield—it is converting every obligation into dollars. Write multiplier, strike, contracts, stock already held, and cash to reserve. Only if you can hold the post-assignment position should you discuss income.

Step two: test a large rally, a flat market, and a large decline. Covered Calls cap upside in rallies; Premium is a thin buffer in declines. Cash-Secured Puts may force purchases above the market after a drop.

Step three: include spreads, commissions, buybacks, early assignment, and taxes. For short, frequent trades, costs can erase a large share of headline Premium.

Core rule: If you will not hold the assigned stock—or accept capped upside above the strike—do not open the trade just because Premium looks attractive.