On 8/20/08, I sold 2 MO OCt08 22 Covered Calls for a net deposit of $46.50 in an IRA account.  My basis for MO is now 37.26.

I sold Oct08 calls rather than Sep08 calls because I don’t want it called away and wanted to get a little better premium than the Sep08 calls offered.

I have owned MO for some time now.  I acquired both KFT and PM from spin offs from MO.  My basis for MO is probably too high because I didn’t do a good job adjusting it when KFT and PM were spun off.  In any case, my intent is to continue to own MO, collect its .29 per quarter dividend and collect option premium every one or two months.