How covered call works （zt）

Take BAC as real example:
I bought BAC yesterday AH at 6.82. It appears not a good buy. I have two chioces
1) I sell it at loss.
2) I reduce the cost of buy and keep it.
Especially BAC alreadyreport ER and the worst is behind. ( At least short term)
I choose 2) to reduce my purches cost. Surprisely BAC Feb 7.5 calls worth 0.7 still. It will expire on Feb20, 2009 20 days from now. I have 1000 shrs of BAC, so I can sell 10 call contracts at 0.7/shrs. That will reduce my cost to 6.82- 07 = $6.12
On Feb 20, if BAC price higher than $7.5 my coverd call be assigedand, my BAC shares be sold at $7.5 each, and I will make 7.5+ 0.7 - 6.82 = 1.38 . That is 20% gain. Not too bad in 20 days. If BAC price is lower than 7.5 at OE day, My covered call expired worthless, and I can keep my BAC shares with the cost down to $6.12.
This is how covered call works.

A trading Idea:
I want to buy more BAC at this depressed level. Because I believe BAC is not going to be bankrupt, and it is not going to be nationalized. What I do this morning is I sold 20 Feb 2.5 naked puts at 0.33/shr
1) If BAC go under 2.5 on Feb 20, my naked puts assiged and I bought 2000 shrs of BAC at price $2.5 and my cost base down to $2.5-0.33 = $2.15 That's what I want.
2) if BAC stay above $2.5 on Feb 20, then I made $660