Back on 8/28 I BTC 4 DF Sep08 22.50 Covered Calls for a net cost of $1418.98, 2 contracts each in my taxable account and an IRA account.

I’ve been watching DF move up as the price of oil decreased along with various food items (in particular milk) that are raw materials for DF.  Prior to closing these calls my basis for these shares was just above $31.  I anticipated that DF would continue to climb and wanted to roll the Calls out and up.  I placed a good till cancel (GTC) order to sell DF Mar09 25 with a limit of 3.70.  That would have netted me a small additional cash flow and raised the strike price by 2.50.  As luck (?) would have it, DF has stopped moving up and is floating around just under $25.

Well, my taxable account has been taking a beating recently.  I finally decided that I would let the GTC order in the IRA run awhile longer and change the order in my taxable account to sell 2 DF Sep08 25 Covered Calls.  That netted me the princely sum of $70.50 and increased my basis to 34.48 for these DF shares.  It did allow me to increase the strike price by 2.50 per share which will be easier to roll out again, if necessary, before the Sep08 options expire.