On 8/31/09, I sold 6 NYX Oct09 30 Covered Calls for a net deposit of $417.47 in an IRA account.  My basis for these NYX shares is now 69.79, excluding dividends received.

I decided upon the 30 strike price because it looks like a resistance level for NYX.  It has approached 30 three times in 2009 and each time as pulled back.  Also, with Sep and Oct being traditional worst months of the year for stock prices I thought I’d play that and see if 30 will hold again.  If not, I’ll just have to see about rolling it out.

I continue to make headway at reducing my basis by selling Calls on shares I own.  For example, I originally purchased NYX at 85, near its high.  I’ve collected 15.21 in net option premiums to reduce my basis to the current 69.79.  I’ve also collected about two years of dividends.  I’m still underwater, but as long as I can keep NYX from being called away I will one day own it way below its then current stock price.  That will make this a winning deal for me.