@jvo First a general thought or two... I started trading options because I was looking for an income stream. I had read the hype and it all sounded so good and easy... and such a sure thing. I worked my way up through plain long calls, spreads, etc. and at some point started communing with the SteadyOptions family (for whom I have the highest praise!). Most of my early years were in the bull market of the last decade, which *did* make it easy to turn a profit regularly. I started calculating how quickly I could become "rich".
What I would occasionally discover was that things would go wrong in ways that I had not expected. That's a major "gotcha" in exotic strategies like options trading. Another major 'gotcha' was my own biased thinking. With each new strategy, I tended only to look at the winning numbers.
After several years of trying different strategies, one thing I've become convinced of is that options trading may be fun and may be profitable AT TIMES, but it is by no means something I can count on for steady income. Certainly not income that I depend upon (like for rent and groceries). In fact, I have taken it a step further and decided I should never open an options trade with any money that I cannot afford to lose.
Now to more directly reply to your question on covered calls... One of the strategies I've tried is known as the options "wheel" strategy. If you're not familiar, Google will point you toward an education on the subject. It is a bit more 'hands off' than the SO methodology (like you're looking for).
Part of the wheel strategy involves covered calls. The 'gotcha' I found on this is when you are trying to place a covered call and the market price of your stock drops and stays down (or worse, keeps going down further). [Please note, that the wheel is not necessary for what I'm describing, it's just been my experience that I'm relating. A plain covered call can play out the same way.]
When you own a stock (or ETF whatever), you've paid some specific price for it. In order not to lose money (Buffett's #1 rule), your call option strike must be no lower than the price you've paid for the stock in the first place. Otherwise, if you are assigned, your shares will be called away at a loss. (Yes, I know you can offset your stock price with your call premiums, but let's keep things simple.) It doesn't take much of a price swing to put you in a situation where you cannot sell a covered call at a reasonable premium (or maybe at all; and sorry but I don't consider $0.01 reasonable) at the strike that matches what you paid for your stock. All those juicy premiums at 20-30 delta taunt you. And it's really easy to drop your resolve and open a contract that has the ability to take several thousands of dollars out of your account overnight (literally -- you'll wake up the next morning and it will be gone).
I've enjoyed the wheel and have made good money off of it. I've also avoided losing money (okay, well mostly 🙂 ). The way I've avoided losing money is painfully boring for an excitable options trader like me -- I stay on the sideline, waiting for favorable conditions to return. Sometimes for months (potentially years even (or in the worst case, never)). That certainly is not an income stream in my book.
The only way (again, without losing money) I've figured out how to get out of a stuck position (ie no income stream) like I've described is this: Set aside the trade that has become hopelessly OTM until (I mean IF) it recovers, and start a new trade (ie buy more stock and sell calls against that). You will once again have an income stream. Of course, to do so requires bringing a fresh wad of cash into the game. That's something that most of us can only do so many times. Especially using only the extra money that's just hanging around and that we can afford to lose.