What would it look like to run an "all cash" account?

I've been wondering what it would look like to build a cash based portfolio. I have been keeping a small amount of cash working in my retirement portfolio, selling cash covered puts. What are the reasons for doing this. It starts with a small amount of cash, not enough to make a significant purchase, but enough to cover 100 shares of one stock or another. If I can capture 0.5-1% put premium in 4 weeks or so, it seems like a reasonable way to earn a bit of money and potentially get those 100 shares at a lower price than the market currently values them. I always choose a stock I already own or would like to own.
If I own 100 shares and sell a put on 100 shares, the put premium gain is spread across 200 shares worth of value, so the earning percentage is cut in half. Put premiums are higher when they are near the money, at the money or in the money when you buy them.
An acceptable yearly total gain would be 8-10% on a portfolio. That means that one would have to capture about 0.75% per month and do it regularly on every option sale. That's a tall order. Some shares would be put, so less money would be in motion. On the other hand, there would be dividends paid, some positions would produce gains and it might be possible to make that kind of money. Of course, if all money is wrapped up in puts, a downdraft means a massive stock purchase in a declining market. That shuts down the put premium business and accepts unrealized losses until the market turns again.

Selling calls means you keep all money invested. If the stock goes up alot, it gets called. you book the premiums and any gain up to the strike price. If you don't care about owning and holding, and if a call premium is no worse or better than a dividend payment, then you shouldn't feel bad about using stocks as a step ladder, rather than participating in all of any run-up.  you look at two things; call premium and dividends paid and decide if you're making enough money in the short term to satisfy you. you don't think about holding, compounding, etc.

I wouldn't do this in a taxable account, but I could do it my IRA accounts.

what about those stocks that have taken a plunge? I think one can't get all bent out of shape. You just start where-ever they land and sell more calls, collect more call premiums and take the cash when the stock gets called, purchase new stock and do some more call selling, or sell puts. It's a very active strategy, with quick gains, quick losses and you can't leave it alone or it won't work. Not sure that's for me. Using cash covered puts as a means to keep cash working and enter positions with a small discount is a hybrid approach that adds a tiny bit to total portfolio gains. It suits me and I'll continue doing it, but trading for premiums doesn't thrill me.