Yesterday, 4/12/10, I BTC 6 NYX Apr10 30 Covered Calls and STO 6 NYX Sep10 31 Covered Calls for a net deposit of $418.83 in an IRA account.  My basis for these NYX shares is now 67.46, excluding dividends received.

These transactions reduced my basis by .69 per share and increased my strike price by $1 or potentially an additional $600 if the stock should be called away.

S&P has a 12 month target of $32 for NYX.  Even so, I sold the Apr10 Covered Calls just about 3 weeks ago (3/23/10) thinking that the $30 strike would probably be a safe level allowing the Calls to expire worthless.  It has been good for a few months now. 

Here is what I wrote after selling the Apr10 Covered Calls:

“I have sold NYX Covered Calls at the $30 strike on 5 prior occasions since Jul09.  They have expired worthless each time.  NYX seems to have a hard time getting above, or staying above, $30.  I sold the current Calls only one month out because I am a little nervous about where it is going and did not want to be exposed very long to that strike.”

As it turns out my concern was apparently justified.  There are still 4 days until April options expire but it currently looks like NYX will be above $30 on Friday.

Even though I am well underwater on NYX I rather like it.  The stock has a .30 quarterly dividend which equals about 3.75% at current price.  My return on basis is lower of course at about 1.76%.  On the plus side my return on basis continues to increase as the basis falls as a result of option premiums.