Today, 8/25/10, I sold 7 BAC Oct10 14 Covered Calls for a net deposit of $131.66 in an IRA account.  My basis for these BAC shares is now 20.34, excluding dividends received.

As of 6/19/10, S&P currently has a 12 month target of $22 for BAC, down from an earlier target of $26, with a 5 star (its highest) rating.  MarketEdge has a price opinion of 16.18 with an avoid rating.  The stock closed at $12.66 today.

I was a little hesitant about selling the 14 strike price but with BAC now in the 12’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 14 strike.  If BAC moves up to the 14 level I will 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.