Yeah, I have been doing it for quite a while now
I keep my portfolio approx 80% in high high quality stocks and the rest in cash
Each month I sell as many puts as I can, using margin on the entire portfolio, but leaving approx 20% on the table in case there is a major event or buying opportunity
I only sell puts in those same highest quality companies, or indices, and I do it as a credit spread to limit the downside - so even in an Enron situation my exposure is significantly reduced
Price stays flat or goes up, the put expires worthless and I keep the option premium
Price goes down a bit, depending on my strike price I am probably still ok and the put expires worthless, I keep the premium
Price goes down a lot I have a whole bunch of rescue options, plus a stock that I like has just got a lot cheaper so I can buy more

I wish I had started 20 years ago...