On 2/25/09, I sold 6 ALSK 7.50 Covered Calls for a net deposit of $139.50 in two IRA accounts, 4 in one and 2 in the  other.  My basis for these ALSK shares is now 12.26 for the 400 shares and 14.25 for the 200 shares, excluding dividends received.

I would have preferred to sell a closer closing month, especially in these times of volatile price swings.  I really don’t want them called away.  I prefer to continue to collect the dividends and option premiums.

ALSK is still paying dividends at the rate of .215 per quarter for the 4th quarter.  That is about a 13.67% yield at its current price of 6.29.  I own ALSK for about twice the current price so my yield is about half that.

I have owned ALSK for some time.  If I remember correctly, it was something that Jim Cramer recommended a couple of years ago.  I was attracted to it for the dividends which, as you may already know, are a basic goal of most of my investing.