On 8/18/08, I sold 4 YHOO Sep08 22.50 Covered Calls for a net deposit of $141.00 in an IRA and my taxable account.  My basis for these YHOO shares is 24.76 and 23.33 respectively.  YHOO closed down today (along with just about everything else) to 19.17.

YHOO, what can I say about it?  I continue to chip away at my basis so one day I expect that it can be called away.  On the other hand, I seem to be developing a thesis that my return on my basis on many stocks meets or exceeds my nominal goal of 20% per year.  In the case of the shares I own in my IRA my annualized return on my basis exceeds 20%.  My real risk appears to be if a stock goes to zero and I my basis is wiped out.  I doubt that will happen with YHOO.

I also have 4 Put (Jan09 27.50) contracts outstanding where, if assigned today, I would own 200 additional shares of YHOO with a basis of 25.25 in an IRA and my taxable account.  That would increase my average basis.