Retirement Income

Stocks and Options

October 28th, 2008 at 4:36 pm

Amazon.com, Inc. (AMZN) – Sold Nov08 Calls

I sold 2 AMZN Nov08 65 Covered Calls on 10/20/08 for a net deposit of $212.50 in an IRA account.  My basis for AMZN is now 60.43.

Even though AMZN does not pay a dividend it is one that I will probably try to hold onto just for the option income.  Even now, I could BTC my Nov08 65 Calls and roll out and up to Jan09 70 for a positive deposit.  That kind of option premium is worth hanging onto, especially because each trade continue to reduce my basis and provide some greater flexibility.

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