On 8/18/08 I STO 12 GM Sep08 12.50 Covered Calls for a net deposit of $459.00 in two IRA accounts.  My basis for these to sets of 600 GM shares is 13.43 and 19.85.

I am less happy with GM now that they have “suspended” their dividend for the foreseeable future.  I knew that might happen but it still doesn’t feel any better.  So, now GM does not match my investment philosophy or goals.  What do I do?  Since I am underwater on both sets of GM stock my regular readers know that I will probably not sell it, take the loss and move on.  Using the same reasoning as I just did for DYN in my prior post I see that my annualized return on my GM lot with basis at 19.85 is 30.41% and 58.86% on the current market price of 10.44.  As bad as GM appears, that return is nothing to sneeze at.  So, you can see why I continue to hold GM and sell Covered Calls each month even if they are not currently paying dividends.