Today, 8/14/12, I BTC 1 Aug12 $23 Put and STO 1 HPQ Feb13 $23 Put for a net deposit of $65.49 in an IRA Account.  My potential basis for these HPQ shares is now about $21.28.  This transaction represents a simple return of about 3.08% and an annualized return of about 5.85% on my potential basis with 192 days to expiration.

I originally thought that I would let these share be assigned and combine them with the other 100 shares I own in this account.  However, as option expiration draws near I find that I do not want to own additional HPQ shares at this time.  So, I decided to roll the Aug12 contract out to Feb13 and will take another look then.

As a reminder, I originally initiated trades on HPQ as one of my trades to generate cash a little faster.  That tactic has not worked out so well for me with HPQ.  I have been able to collect some dividends though while I wait.

On a related note, my HPQ Aug12 $29 Covered Calls are going to expire worthless in a few days.  I have not decided for sure but am leaning toward selling the Jan14 $30 Covered Call for the next round unless HPQ stages a quick recovery in the next week.

HPQ pays a small divided at 13.2 cents per quarter (up from 12 cents earlier), which is a yield of about 2.72% at its current price of 19.43 at this writing.  I have been able to collect dividends twice since acquiring HPQ back in February for a total of $277.20 with a yield on my basis just over 1.89%.

S&P has a 12-month price target of $25 with a Hold recommendation on HPQ.  MarketEdge has a price opinion of $20.37 and an Avoid recommendation.  The 24 Yahoo Analysts have a 12-month price target of $25.98 and a recommendation of 2.8 on a scale where 1.0 is a Strong Buy and 5.0 is a Strong Sell.