On Wednesday, 5/20/09, I sold 4 KMX Jun09 12.50 Covered Calls for a net deposit of $69.00 in an IRA account.  My basis for these KMX shares is now 21.52.

This trade occurred after I left town for my son’s wedding last week so I did not even know about it until Friday morning.  Then, with all of the wedding events, travel and finally a problem with my browser that kept me offline until just a few minutes ago I have not been able to document it.  I was able to make a few other trades on a borrowed computer which I will write about shortly.

KMX was moving up until about 2 weeks ago.  It took a dip and now appears to be moving up again.  KMX does not pay a dividend so it does not meet my current investment objectives.  On the other hand, I have been able to write Calls on it on a pretty regular basis.

I have considered selling some Puts on it, perhaps at the $10 strike with the thought that they would expire worthless, or, if assigned, reduce my basis which would allow me to sell Calls with less concern that I might be called away below the basis.  Both the MACD and Stochastic have given recent buy signals and the stock is just about to move above its 30 day moving average.  The combination of the 3 signals usually indicates a strong buy signal which is good if I want to sell the $10 puts.