Retirement Income

Stocks and Options

December 30th, 2007 at 9:13 pm

Dec 07 Dean Foods Company – DF

Two DF Dec08 30 calls expired.  I originally bought this stock when they offered a special $15 dividend late in 2006.  They don’t normally pay dividends and, even though the stock would fall by about $15 after the dividend was paid, I thought it interesting enough to get involved.  Well, the recent high price of producing food products has cut deeply into the earnings per share and the stock has suffered.  So, I sell covered calls on the stock and one day it will be called away.  I currently own the stock at $32.44.  I sold 2 Mar98 30 calls for $90.50 in an IRA account.

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