I’m still catching up on trades I made the last week or so.  Sorry about that.  I just seem to have too many other things going on…or maybe I have too many stocks to deal with and write about. 

So, on with the saga.

On 8/18/08, I sold 2 BAC Sep08 35 Covered Calls for a net deposit of $42.50 in an IRA account.  My basis for these BAC shares is now 45.56, not including dividends received.

As you can see, I am still underwater on BAC.  I just got in too early.  I obviously don’t want it called away so I sell Covered Calls far enough out of the money to provide some additional cushion if the stock starts moving up.  Since BAC pays a good dividend (so far) of .64 per quarter, about 8.84% at current valuation, it obviously meets my general investing philosophy.  I intend to hold onto BAC to collect the dividends and option premium for as long as possible.  In fact, I should probably see about selling some additional puts at the 25 strike price so I can pick up some more at these lower prices.  The Sep08 25 Put is selling for about .52 as I write this.