This morning I BTC 7 AUY May08 15 Covered Calls and STO 7 AUY Jun08 15 Covered Calls for a net deposit of $461.53 in 3 IRA accounts.

I own these AUY shares from 7.76 to 10.64 so would have been okay if they were called away in May08 at 15 but as I said in my previous post on BVF I like selling Covered Calls on stocks I already own even if I need to roll them out occasionally.  In this case, the annualized return of the additional premium is quite nice at more than 54% on shares I own at $10.64 and even greater on the others.  Wouldn’t it be nice if I actually earn my entire purchase price in premiums resulting in a basis of zero (or below zero) on this stock.  My annualized premium percentage would then be infinite.