On 11/24/09, I BTC 10 GE Dec09 15 Covered Calls and STO 10 GE Jan11 17.50 Covered Calls for a net deposit of $523.89 in multiple IRA accounts.  My basis for these GE shares now ranges from 8.32 to 10.38, excluding dividends received.

Obviously I could have let GE be called away in December, which I am pretty sure would have happened, and made a profit.  But, with my basis so low I receive a pretty good dividend yield on GE from about 3.67% to 4.55% on my basis at the last payout in October.  The yield will be a little higher next quarter and next year with the lower basis.

I rolled all the way out to Jan11 because I wanted to roll up to the next higher strike price with a positive net deposit.  I had to go out that far to be able to do that.  That will minimize my income from option premiums but will allow me to (probably) retain the stock well into next year while continuing to collect the dividend income.  I did a little research and found that S&P has a 12 month target of $19 for GE.  Having the 17.50 strike price also prepares me better for the next roll out and up a year from now if S&P is anywhere near accurate on their forecast.