On 5/28/09, I sold 3 S Jul09 6 Covered Calls for a net deposit of $43.75 in an IRA account.  My basis for these S shares is now 21.28, excluding dividends received.

As you can see, I am underwater on these S shares.  I am making steady, although slow, progress toward reducing my basis.  I am also able to begin to raise my strike price and sell closer in options again.  S actually began its recent climb from under $2 in late Dec08 and appears likely to continue that trend for the foreseeable future.  Of course, it needs to get back to its level of about two years ago before I can let it go at a profit.