That's not interest, it's yield enhancement. You're giving away upside potential in exchange for premium collected, and you still have downside exposure.
Anyone trading covered calls on MM in assets already understands this. Interest is a simpler concept which leads people to more advanced yield enhancement strategies.
Giving away long tail upside in exchange for guaranteed yield is a perfectly fine method of salary replacement.
Nowadays, not everyone who trades options in a personal account understands the risks.
It's not interest and it's not guaranteed yield. It's yield enhancement. You are exchanging one reward for another, without totally attenuating the risk. You can lose money if the stock falls below your purchase price minus the premium collected.
Collecting interest can be risky too, but it's a question of default rather than price action.
