Jimmyll, the Covered Call transaction you outlined would not constitute an unlimited loss potential.  Unlimited loss potential in trading Options depends on the type of Option you select. As I mentioned previously, I try to choose Option strategies that limit my potential loss to only the Premium that I pay for the transaction.

  I have already covered the advantage of a Covered Call in a previous post.  I have multiple Covered Call positions at present regarding LAC.  I have never indicated that Covered Calls are a form of Unlimited Loss potential.  If that is the impression I left you, then I apologize because that is not the message I intended to convey.

Unlimited Loss potential exists in, for example, Short Call Option trades and Selling Naked Calls.  Selling Put Options creates the potential that the floor on the transaction can potentially drop to Zero and thus create a significant loss, depending on the entry price of the stock at the time you make the trade.

Just to keep things simple, because as you well know Option trading quickly gets complicated, I will include the Investopedia article that includes comments about the risk potential for Selling Calls and Selling Puts.  This touches on Unlimited Loss and on Loss potential that goes all the way down to Zero price for the underlying stock:

Is it Risky to Invest in Options? (investopedia.com)

That article only touches the surface.  Each strategy has its own profit and loss potential, but the ones that have a risk potential in excess of the Premium paid are the ones I think it is best for beginners to avoid. 

I have been trading Options for 30+ years, but I still categorize my knowledge as that of a "Beginner".  I suppose that is because i have avoided the almost limitless number of  complex Option strategies that others, less timid than I am, seem to aggressively gravitate to with enthusiasm.  Different investors have different comfort levels.  I have always preferred the "K.I.S.S." method I learned about as a precaution in the U.S. Army decades ago:  Keep It Simple Stupid!  To me, at least, unlimited risk and risk of the stock losing all the way down to Zero constitutes a violation of the K.I.S.S. precaution.  JMO

Glad to have your comments here, Jimmyll.

Okiedo