Today, Feb 23, 2010, I sold 3 ZQK Mar10 2.50 Covered Calls for a net deposit of $17.71 in my taxable account.  My basis for these ZQK shares is now 9.97.

ZQK was trading around 2.35 when I sold these Calls.  Then, late in the day, it jumped up to close at 2.50.  I don’t see any news but there must be something out there.

I have been disappointed with ZQK and will exit it at some point and probably never own it again.  A big reason for that is that ZQK does not pay a dividend and as you know by now I have a strong bias toward dividend paying stocks.  The other reason is that the options don’t yield very much, at least not at this time.

I chose the $2.50 strike price simply because it was above the current price and and I see that S&P only has a $3 12 month target price for ZQK.  If they are right I should be able to continue to sell 2.50 strikes or roll out my existing Calls at the same strike for awhile, each time reducing my basis by a few cents.