Yesterday, 6/21/10, I sold 7 BAC Aug10 17 Covered Calls for a net deposit of $299.65 in an IRA account.  My basis for these BAC shares is now 20.53.

As of 6/19/10, S&P continues to have 12 month target of $26 for BAC.  They had a target of only $22 in early April.  The stock is trading at about $15.80 as I write this.

Just as I was in May, I was a little hesitant about selling the 17 strike price but with BAC still in the 15’s and the market in general and financials in particular trending down or at best in a range, I decided to go ahead and sell the 17 strike.  I didn’t want to sell July Calls because of the vacation I mentioned in an earlier post and did not feel comfortable going out beyond August.  If BAC moves up to the 17 level I will be able to roll these Calls out and probably up before the August expiration.

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.