I sold 2 BA Dec08 55 Covered Calls on 10/22/08 for a net deposit of $110.50 in an IRA account.  My basis for these BA shares is now 62.88 excluding dividends received.

BA has recently settled a labor dispute which, along with the rising market, has caused its share price to rise to close at 52.42 on Friday.  I need to watch this because the Dec08 55 strike price may be in jeopardy.  If so, I will need to roll out and up, if possible, the Dec08 Call.

The other side of the coin is that if Obama wins the election in a couple of days any company related to defense may suffer.

BA does pay a dividend at .40 for the most recent quarters which equates to about 3.16% annualized.

On 8/18/08 I sold 2 BA Sep08 70 Covered Calls for a net deposit of $60.50 in an IRA account.  My basis for BA is now 64.30.

BA is one of the stocks that I was assigned in August.  It is my only holding in the aerospace and defense sector.  I have felt for sometime that I should own some of BA and finally decided to sell some puts in July to see if I could buy it cheaper.  As you can see, I did.

BA pays a .40 quarterly dividend so it fits my general investing philosophy.  I was able to sell options, although at a rather small premium, for $5 above my entry price.  I hope that I can ride BA back up by continuing to sell out of the money calls and rolling out and up as the need arises.  Of course, BA’s current labor negotiations may slow that goal down.

Here are the results for the options that I still had outstanding when the markets closed on Friday, 8/15/08.  I had four Put assignments and 22 Calls across multiple accounts that expired allowing me to keep all of the option premium.  The 22 Calls are summarized by stock across accounts resulting in 16 stocks being represented in the following list.  I will begin to sell Calls on these stocks starting tomorrow.