Read Option Volatility and Pricing by Sheldon Natenberg. The mother of all options books. Selling covered calls is a great idea if you are planning to be long the stock. You won't get exercised unless the stock is $22.59 or greater, and you rode the stock up 6 or 7 bucks. One way to think of it...
HW is a great value stock when talking about coal. Priced about half of book. Solid balance sheet. Debt to Equity about 0.50. Margins are solid, not ridiculous, but good. There are some very respected value firms that own this stock.
Check it out and let me know what you think.