Covered calls offer a relatively low-risk alternative to increase investment returns. Investors may consider writing covered calls on the stock they have in their IRAs if their account allows it. Traders should ask their broker or brokerage firm prior to opening an account. This approach to trading options has the potential to produce returns on investment, regardless of whether the stock price rises or falls, when executed properly. On the other hand, it can also limit the potential returns on the upside should the stock price continue to rise.