Today, I BTC 2 PM Oct09 50 Covered Calls and STO 2 PM Nov09 50 Covered Calls for a net deposit of $146.98 in an IRA account.  My basis for these PM shares is now 47.58, excluding dividends received.

At this writing, with just over 1 hour to go before the markets close and Oct09 options expire, PM is trading at 51.03, up .65 for the day.  I prefer to continue to own PM for the dividends and option premiums that I can collect.

My basis for PM is currently below the market price by about 3.45 so I am okay just rolling out these Calls.  Also, PM’s high is about 52.50 so I am suspect that this recent climb will begin to retrace and that the 50 strike price will expire worthless.  If not, I might find myself rolling out and up in November.

PM raised its dividend this last quarter to .58 from .54 per share.  That is about 4.55% at current market value and 4.8% on my current basis.