Today I sold 2 BAC Feb09 10 Covered Calls for a net deposit of $18.50 in an IRA account.  My basis for these BAC shares is now 45.10, excluding any dividends received.

How the mighty have fallen.  Just last September I sold 2 BAC Jan09 40 Covered Calls for 350.50.  Now I am reduced to sell the $10 strike price for the next month for the measly 18.50.  I was thinking that BAC was one of the good guys and would not be allowed to fail.  That may still be true but if it is not being allowed to fail it is certainly being allowed to get pretty sick.

BAC cut its dividend in half last October to .32 from .64 per quarter.  I wonder if it might not cut it again.  I guess time will tell about that.  In the meantime, I am going to roll the dice and believe that BAC will survive and be stronger when this is all over.