This morning I BTC 4 KMX Jul08 25 Puts and STO 4 KMX Oct08 25 Puts for a net deposit of $98.00 in an IRA account.  The stock is currently trading at $19.50 and I would own the stock at $20.01 if assigned.

I had rolled out to the KMX Jul08 Puts in Mar08.  Actually, I’ve been rolling out KMX Puts since Mar07 as I tried to avoid being put the stock and to reduce my basis if it is put to me.  So far, so good.  If KMX stays about where it is today I could be put it and begin selling Covered Calls at the 22.50 or even the 25 strike price and make money on the other side.  KMX does not pay a dividend though so it does not meet my general investment strategy of holding only dividend paying stocks.  I am still in transition to that strategy and will continue to work the other stocks until they are out of my portfolio.  I should say though that I am not a fanatic on the strategy and will stay open to the merits of selling Puts on stocks that do not pay dividends as they become available.