Today, 2/8/12, 2 OLN Feb12 20.00 Covered Calls were called away from me for a net deposit of $3,979.93 in my Taxable account.  Including option premiums, this sale provided a net profit of $406.41 on a stock that I have owned for about 3 months.

The shares were called away early because they go ex-dividend today and somebody wanted to collect the dividend.  From the beginning, I considered these OLN shares as a trade in this account and as such was prepared for them to be called away in February.  This is different from what I might do in another account.  My goal is to increase the value of this account as quickly as possible and one of my strategies is to acquire stocks through Put assignments and to sell those stocks through selling Covered Calls at or just above my acquisition price.  I hope to increase the speed of money movement into the account by this process.  This process has not worked quite as well as I had expected but I continue to have hopes for success.

S&P continues a 12-month price target of $26.00 and a Buy recommendation with an Excellent (100%) track record predicting OLNs price movement.  MarketEdge has a price opinion of $21.43 with a Long recommendation and a Good (53%) track record on OLN.  The 6 YAHOO analysts have a 12-month target of $24.88 with a 2.6 recommendation on a scale where 1.0 is a Strong Buy and 5.0 is a Strong Sell.

OLN is a very dependable dividend payer having paid dividends each quarter for something like 87 years.  At a current price of $22.34, its current yield is about 3.58% at 20 cents per quarter.  I might like to own OLN as a long-term core holding but am looking to trade it in this account to generate larger current income.  I will be looking at again selling Puts on OLN to generate cash flow into the account.