This morning I sold 2 DIVX Aug08 10 Covered Calls for $10.50 in my taxable account.  My basis is now 20.59 for these DIVX shares.

I have sat on these and DIVX shares in other accounts since their Mar08 calls expired.  There were a couple of reasons for my delay in selling new calls.  The first is that I was not sure (and am still not) where the stock price is going.  Right now. it appears that my 10 call options will expire worthless as I hope.  The second reason for my delay was that, for some reason not clearly explained to me, E*Trade was not allowing on-line option transactions on DIVX.  I could call, give the order to a representative, he would then get it approved and enter the order.  It was just too much trouble.

My goal with DIVX now is to chip away at my basis until I can sell the stock at a break even or better price.  I have 600 more DIVX shares in other accounts that I will be trying to sell options on in the next few days.