March 26th, 2008 at 12:21 pm
I sold 2 MO Apr08 75 Calls for 140.50 in an IRA.
My basis is now 83.44 for these MO shares. Since I have owned MO I have received spin off shares of KFT which I have kept and sell call on and I will also receive 200 shares of the new Phillip Morris International (PM) on Mar 28. MO is already ex-date for the PM distribution so I expect its price will not be further effected by that anticipation.
MO is one of my “core” holdings. It pays a good dividend at .75 per quarter but I expect that will probably drop some as a result of the PM spin off. I also get a reasonable option premium on the calls if I continue to sell them out one month at a time.
March 26th, 2008 at 11:40 am
I sold 3 S Apr08 8 Calls for $34.75 in an IRA.
My basis for S is now 20.41 and I feel pretty comfortable that it will not be called away at the $8 strike price. The good news is that I’ve been able to sell calls for one or two months out after each expiration. The bad news is that each time the strike price was lower than the last. S does pay a quarterly dividend of .025. 
March 7th, 2008 at 9:04 pm
Today I BTC 2 BRCD Mar08 7 Calls and STO 2 BRCD Oct08 8 Calls for an additional $51.01 in my taxable account. I now own this stock at 8.69.
The stock has been moving up and down but trending up except just recently. I probably should have let this run until a while longer to see if it might expire worthless in a couple of weeks but frankly I was getting a little bored not doing any trading. Also, I had been watching these options looking for the opportunity to roll out and up. Until now the price differentials were not there.
