Yesterday, 1/23/12 I sold 3 MWW Feb12 10 Covered Calls for a net deposit of $34.73 in an IRA account.  My basis for these MWW shares is now $20.00.  This transaction represents a simple return of about .57% and an annualized return of about 8.07% with 26 days to expiration.

I would have preferred to sell a higher strike price but did not want to go too far out to do so.  MWW is selling at $8.66 as I write this and could easily be at the $10 level by February expiration.  I am under water here so I would probably try to roll the Feb12 options out and up if possible.

I did have 1 MWW $9 Covered Call assigned away from me last week.  The stock closed at exactly $9, which makes it a toss-up if it will be assigned.  I had really expected that they would all be called away because I was not able to roll the Jan12 Calls out at a net credit.  As it turns out I got lucky…I think…and am able to continue selling Covered Calls and at a $1 higher strike.

S&P continues a 12-month price target of $12.00, and continues a Buy rating.  Market Edge Second Opinion has a price opinion of $7.92 has a Neutral rating.  The 13 Yahoo Analysts that cover MWW have a 12-month price target of $12.81 and a mean recommendation of 2.2 where 1.0 is a Strong Buy and 5.0 is a Strong Sell.

MWW does not pay a dividend and has been somewhat of a laggard in my accounts but that is probably a function of the economy as much as anything.  Eventually I expect that I will let MWW be called away from me…unless of course my basis is so reduced that my option premiums tempt me to continue holding onto it.