I wrote this yesterday but could not post it then due to some issues on my server.  Today, the market is recovering some and at least one (BAC) of my Covered Calls is again in the money while the two that I thought might fall out of the money (BMY and RYL) have moved up again.

Well, here we are in the last week for the Aug09 Options.  It appears as if the sell off that started last week may continue.  I was actually hoping for some weakness this week because I had several Covered Calls that were in the money last week.  At various times my Calls on BA, BMY, MWW, RYL, and BAC were in the money.  Today, only BMY and RYL are still in the money but both are down close to the strike price and look as if they may fall out of the money as long as the current trend continues.

I have a mixed feeling on the BMY shares.  I originally purchased them late in June and sold August Covered Calls above my purchase price with the idea that they would be called away giving me a short term profit if about $200.  I also collected a $62 dividend early this month.  Not too bad.  However, my original reason for looking at BMY is rearing its head.  BMY pays a good dividend (6.31% on my basis on Aug 3) and I can write reasonable Covered Calls on it.  With that in mind I have decided to try to hang on to BMY for now.

If the weakness does continue this week I suspect that I will be able to sell some new Puts on some stocks I might like to own more of next week.  For example: Dec BMY 20, Sep AA 11 or 12, Oct AA 10, Sep RYL 18, 19 or 29, Sep BAC 15 or 16.