Yesterday 5/24/10, I sold 2 BMY Sep10 25 Calls for a net deposit of $124.46 an IRA account.  My basis for these BMY shares is now 23.83, excluding dividends received.

I would prefer to have sold Jul10 Calls but I will be on vacation in Alaska when July options expire and I want to be able to take some corrective action if they are in danger of being called away.  I think of BMY as part of my core holding because of its good return (5.27% on my basis when last received on 5/3/10) and for the extra income I can receive from selling Covered Calls.

I sold the 25 strike price this time rather than the 28 strike price I sold last time.  I decided to go ahead and sell the 25 strike this time because, if BMY is called away, I would still make a profit on my basis.  But, as I said above, I do not really want it called away.  With the market trending down I just decided that the 25 strike would be a reasonable risk and it generated a greater option premium.