On 5/15/09, I BTC 6 NYX May09 25 Covered Calls and STO 6 NYX Jun09 27 Covered Calls for a net deposit of $373.00 in an IRA account.  My basis for these NYX shares is now 69.72, excluding dividends received.

As it turned out, I could have done nothing here because NYX ended up closing below my May09 25 strike price.  However, I was going to be away from my computer for much of last Friday and wanted to make sure that the shares were not called away so I looked at this trade an an insurance trade.

In addition to the new option premium, I was able to capture .09 per share ($54 total) on the closing trade.  I really like it when I can do that.  As I’ve written on several posts recently, it has cost me money to roll out and up.

NYX pays .30 dividend which equates to 4.6% at its current price.  Of course, my basis is higher so my return is less.  NYX has also been advancing since early Mar09, along with the rest of the market.  I expect to continue to hold NYX as part of my core portfolio.  I also expect that I will need to continue to roll it out and up for the next several months as the market rebounds.