Today, 4/20/10, I BTC 2 BA May10 55 Covered Calls and STO 2 BA Jan11 55 Covered Calls for a net deposit of $226.87 in an IRA account.  My basis for these BA shares is now 61.26, excluding dividends received.

This is the third time in a row that I have had to roll out BA Covered Calls but it is the first time that I have not been able to also roll them up to a higher strike price.  Of course I could have rolled them up but it would have been at a net cost rather than a net credit to my account.  I will watch BA looking for an opportunity to roll these Calls up.  If the opportunity does not present it self by Jan11 expiration I will probably roll them up even if it requires a net cost transaction, as long as the higher strike price is greater than the cost to do so.

I prefer to continue to hold onto BA.  It pays a decent dividend at .42 per quarter which equates to about a 2.37% annual yield at its current market price.  Of course, my basis is below the current market price so my return is a little higher at 2.69% on the last dividends received in Mar10.