Yesterday, Feb 22, 2010, I sold 3 MWW Sep10 20 Calls for a net deposit of $107.71 in an IRA account.  My basis for these MWW shares is now 24.10.

I had sold 2 MWW Feb10 17.50 Puts that were assigned to me last Friday.  An effect was to reduce my MWW basis to 24.10 from 39.45 after selling the current Sep10 Calls.  I considered selling the Jan11 25 Calls which would have resulted in a strike price above my basis and a more comfortable feeling.  In the end I decided to sell the Sep10 20 after seeing the S&P 12 month price target of 16 and that other analysts have recently down graded the stock.

I didn’t sell a lower strike price because, despite what the analysts are saying, I keep hearing from various sources that jobs, particularly temporary jobs, are beginning to appear.  I think MWW stands to gain from that new job volume.

After all that, my real goal is to get out of MWW at a profit.  Averaging down my basis helps me do that.  MWW does not pay a dividend which is a major reason for me to eventually have it called away.  The only reason I would consider keeping the stock is if my basis get so low that I can continue to sell Covered Calls and generate a reasonable annual yield.  My target yield would be around 10%.