On 7/24/08, I sold 2 MO Aug08 22 Covered Calls for a net deposit of $36.50 in an IRA account.  My basis for MO is now $37.49.

MO has confused me of late because of the KFT and PM spin-offs.  I am not really sure what my basis is but am using the stated value as a working number.  I should really know my basis but because this is an IRA account I don’t need to know for tax purposes.  I think my basis is probably too high.

MO is currently paying a .29 per share per quarter dividend for an annualized 5.57%.  I am slightlytempted to sell some 20 Puts on MO.  If put to me they would average down my basis in what I think is still a pretty good stock.  However, I think the FNM and FRE puts I sold last week are enough for now.  I am holding onto amost $34k in cash in this IRA account to provide me some flexibility if need be.  Although, it may need be that I need to sell those MO 20 Puts.  I guess I’ll just watch MO for a little little longer.