Today, 9/2/10 I BTC 2 BRCD Sep10 5 Covered Calls and STO 2 Jan11 5 Covered Calls for a net deposit of $32.95 in my taxable account.  My basis for these BRCD shares is now 9.82.  This transaction represents a simple return of 1.15% and an annualized return of 2.97% on my basis.

Thomson Reuters continues to rate BRCD as Under Perform as recently as 8/31/10 while S&P has reduced its 12 month price target to 5.00 from 5.50 and has a 3 star out of 5 rating for BRCD.  Market Edge Second Opinion has a price opinion of 5.04 and a neutral rating for BRCD.

When I sole the Sep10 Covered Calls in July, I thought that I might need to roll BRCD out and had hoped that I might be able to roll it up at the same time.  As it turns out I would need to pay to roll the strike up so decided to just roll it out.  The various analyst research reports are supportive of just rolling the Calls out.  On the other hand, BRCD is in essentially the same business as 3PAR which was recently bid up by HPQ and DELL.  There certainly exists the real possibility that somebody will come along and make a bid for BRCD which would leave my $5 strike price in the dust.  I suspect that it is this possibility that has caused BRCD to run up 70 cents or so in the past week.

BRCD does not pay a dividend and has been a real laggard in my accounts.  I will be quite happy for it to be called away one day.