On 12/24/09, 4 NLY Jan10 17.50 Covered Calls were exercised and my 400 shares were called away from an IRA account.  My basis for these NLY shares was 11.41, excluding dividends received, giving me a profit of $2416 after commissions.

NLY went ex-dividend on 12/24/09 and I should have known it and rolled it out to keep it from being called away.  NLY pays a 16%+ dividend at it current price of 17.35.  At the last dividend payment I was receiving 24.19% on my basis.  NLY just raised its dividend to .75 from .69 making the returns even greater.

As I said, I should have been paying closer attention and rolled my Jan10 Calls out to protect the stock.  Since I didn’t I decided to just buy the shares again which I did on the next trading day, 12/28/09.  I then sold 4 NLY Feb10 19 Covered Calls for a net deposit of $58.98.  My basis for these new NLY shares is now 17.65.