On 12/2/09, I bought 100 shares of S at a net of 3.85 and sold 4 S May10 5 Covered Calls for a net deposit on the Calls of $114.98 in an IRA account.  My average basis for the S shares is now 16.59.

I bought the 100 shares to average down my basis for Sprint.  Being able to sell Covered Calls above the price of the new shares helped me decide to make this trade.  If Sprint is still down in May I will probably buy additional shares to help further reduce my basis.  Eventually, I expect to get out of Sprint at a profit above my basis.