Yesterday I sold 2 ACAS Jun09 5 Calls for a net deposit of $40.50 in an IRA account.  My basis for these ACAS shares is now 23.20, excluding dividends received.

ACAS has been rising lately which forced me to BTC my May09 2.50 Puts as I wrote about on Monday.  Rolling these Calls out and up cost me 1.59 per share for an increase of 2.50 in the strike price.  A short term cost for a potential longer term  gain.

ACAS was paying a great dividend of more than 1.00 per quarter.  Unfortunately, it last paid that great dividend last October.  They have been having some debt issues.  Most recently (May 6) they defaulted on $2.3 billion of unsecured debt.  They have been has been in talks with lenders since December about restructuring their credit facilities and are looking for buyers for their European portfolio in a deal that could be worth up to $2 billion.

Something must be looking better for ACAS though because on the same day they defaulted on the debt and analyst at KBW raised ACAS to market perform from under perform and raised its target price to $3 from $1.  However, that was not much of a stretch with the stock already above 3.