On Monday, 1/23/12, I sold 9 BAC Apr12 $9.00 Covered Calls for a net deposit of $93.18 in an IRA account.  My basis for these BAC shares is now $15.87, excluding dividends received.  This transaction represents a simple return of about .82% and an annualized return of about 3.34% on my prior basis.

S&P currently has a 12-month target of $8 for BAC, with a 3 star (Hold) rating.  MarketEdge currently has a price opinion to $6.61 with a Long rating.  The 24 Yahoo Analysts have a mean 12-month estimate of 2.5 where 1.0 is a Strong Buy and 5.0 is a Strong Sell. 

I increased my strike price this time up from my previous $7.50 that just expired.  I decided to sell the $9 strike after watching BAC increase in price since mid December.  I would have liked to sell a higher strike but did not want to go too far out.  If BAC moves up to the $9 level I should be able to roll these Calls out and probably up before they expire.

BAC currently pays a paltry .01 quarterly dividend.  It has paid a .64 quarterly dividend as recently as September 2008.  I believe that BAC will eventually raise its dividend again.  I don’t know if it will be back to the .64 level but certainly it should be well above what it is now.  I continue to believe that BAC will be a strong winner for me one day, or maybe I should say someday in the future.