Today, 6/18/12, I sold 2 F Aug12 $11 Covered Calls for a net deposit of $34.48 in an IRA accounts.  My basis for these F shares is now $13.01.  This transaction represents a simple return of about 1.31% and an annualized return of about 7.81% on my basis with 61 days to expiration.

Ford finally announced a dividend of five cents.  Five cents equals the last dividend Ford paid back on July 31, 2006.  As far as I can see, Ford had paid a ten-cent dividend from 2002 through April 28, 2006.  So…I guess starting out at five cents is a reasonable place to start them up again.  I have collected the five cents twice now, most recently on June 1st for a yield of 1.52% on my basis for these shares at that time.

The 12 Yahoo! Analysts have a 1-year mean price target of $15.75, down from $16.25 when I last wrote in December, with a recommendation of 2.1, where 1.0 is a Strong Buy and 5.0 is a Strong Sell.  S&P has a 12-month price target of $14.00, down from $15.00 in December, and continues a Buy recommendation.  MarketEdge has a price opinion of $10.35, down from a previous $11.03, and has a Neutral recommendation.

I am a little disappointed with the five-cent dividend and with Ford’s current stock price, which affects the option premium I collect.  On the other hand, Ford is now paying a dividend and I am able to collect option premium.  I will need to watch that Ford does not get too high on me now because I am a little underwater at my current strike price.  Also, I was a little aggressive selling the $11 strike with F currently trading at $10.34.  I guess that strike is a statement about my pessimistic opinion of F today.  I may need to roll these Aug Calls out and hopefully up.