July 24th, 2008 at 10:31 am
On 7/22/08, I sold 4 TBI Aug08 15 Covered Calls for a net deposit of $189.00 in my taxable account. My basis, after option premiums, in these TBI shares is now 16.31.
I am still underwater on these TBI shares but am getting closer to break even, picking up .47 per share with this sale. TBI does not pay a dividend so it does not fit into my current general investment objectives. Even so, as long as I can make this kind of monthly return by selling Covered Calls I will probably continue to own it and sell the Calls. After all, if this continues I will own TBI free and clear in less than a year and then the rate of return will be infinite. :-) That will be hard to beat.
July 24th, 2008 at 10:23 am
I said that I would get my posting caught up yesterday. Well…things didn’t work out that way. So, maybe I can get everything caught up today. Here goes…
On 7/22/08, I sold 2 BP Aug08 65 Covered Calls for a net deposit of $250.50 in an IRA account. My basis for these BP shares is now 60.45 after option premiums but without considering dividend income.
I continue to like BP and the oil sector in general. It is my belief that the current pullback in crude prices, while welcome, is temporary. Of course temporary is an imprecise term. 
I also like the dividends that BP provides. It is currently paying .8115 per share per quarter for an 5.16% annualized return. That dividend plus the option premium makes for a pretty nice return on my investment. I own a total of 500 BP shares in this IRA account.
July 23rd, 2008 at 1:09 pm
On 7/22/08, I sold 10 AUY Aug08 15 Calls for a net deposit of $360.50 in 4 IRA accounts. I have owned 700 of these shares for some time with a basis from 6.85 to 10.34. The basis for the other 300 shares is 12.11. These last shares were just put to me last weekend.
AUY doesn’t pay a great dividend even though they just tripled it to .01 per month from .01 per quarter. However, if I can keep selling calls like this my basis will be zero before too long. My return on invested capital will then be infinite. :-) That is hard to beat. The secret, of course, is that AUY has been tending to channel between the high 12’s and low 16’s for awhile. When it is above 15 I have been able to roll it out and continue to hold and make additional money on AUY.
