On 8/25/08, I sold 4 TIE Sep08 15 Covered Calls for a net deposit of $29.00 in my taxable account.  My basis for these TIE shares is now 29.49.

200 of these TIE shares were put to me on 8/25/08 as a result of assignment of 2 TIE Jan09 30 Puts that I had sold (and rolled out) some time ago.  The basis is the average of the recently acquired and the previously owned TIE shares.

TIE does pay a small dividend of .075 per quarter.  That’s nothing to get excited about though.  Neither are the option premiums that I am collecting.  However, I intend to continue to chip away at my basis.

It is a little humorous that I held off selling these Calls waiting for TIE to rebound some from its recent low of 10.  The recent Put assignment caused me to quit waiting.  The humerous part is that TIE has been moving up quite nicely since then.  It’s almost as if somebody was playing a trick on me.