Today I BTC 2 AMD Oct09 5 Covered Calls and STO 2 AMD Jan11 7.50 Covered Calls for a net deposit of $38.99 in my taxable account.  My basis for these AMD shares is now 16.26.

AMD has been pretty much moving up since early Mar09.  It took a dip down in June and was down under $4 when my prior Covered Calls on it expired that month.  It appeared to me that it was going to stay down there or perhaps even fall lower as it has done in the past.  Hence, my choosing the Oct09 5 Covered Calls to sell at that time.  Now, the story looks a little different with AMD continuing to rise again.  I may regret going all the way out to Jan11 to sell the 7.50 strike but I was a little tired of rolling out and up without depositing some additional cash in the process.

Today I sold 2 AMD Oct09 5 Covered Calls for a net deposit of $42.49 in my taxable account.  My basis for these AMD shares is now 16.46.

I went out to Oct09 this time to be able to get a little extra premium.  I also sold the $5 strike price knowing that I may need to roll these calls out by October.  $5 has been a resistance level in the past though so I may be okay.  Time will tell.

I’ve been a little nervous lately about how far and fast the market was advancing.  I had several Covered Calls that were in the money. Yesterday I decided to Buy to Close some of them with the idea that they would continue higher and I could roll them out at a higher strike price in a few days.  I did this knowing that it would probably cost me in the short term but with the belief that I would benefit in the longer term.  These transactions cost me a total of $2967.44 and raised my basis for each of the underlying stocks.  I still have BRCD and S May09 Covered Calls that are in the money.  I will continue to monitor them and roll them out if necessary prior to options expiration.   Here are the summarized transactions: