I was assigned 200 shares of DIVX (at 22.50) each in a taxable and an IRA account in June of 2007.  I originally heard of these shares from Jim Cramer.  I listened to Cramer, read some of what DIVX does and thought the story sounded good.  Among other things, DIVX produces video compression software.  This should become more and more important as video downloads become more common over the Internet.   I still think the story sounds good but the stock performance has been disappointing.

Anyway, 4 Dec08 20 calls expired worthless.  I sold 4 Feb08 17.50 calls for $80.50 in both the taxable and IRA account.  I currently own the stock for $18.94 so this is below my basis but I don’t expect the stock to be called away in Feb. but I was not so confident that I wanted any more time exposure.  I’ll watch it and roll it out if that appears to be a danger.

 By the way, I also own 400 additional shares in two IRA accounts at $16.25.  I have Mar08 17.50 calls open on these shares.

I have netted $3581 in put and call premium on these 800 shares since Jan 07.  If I had owned all of the stock for one year (and I have not) that would be about an 8% return.  That does not hit my target of 20% but is not too bad considering.