On 8/31/09, I sold 6 NYX Oct09 30 Covered Calls for a net deposit of $417.47 in an IRA account.  My basis for these NYX shares is now 69.79, excluding dividends received.

I decided upon the 30 strike price because it looks like a resistance level for NYX.  It has approached 30 three times in 2009 and each time as pulled back.  Also, with Sep and Oct being traditional worst months of the year for stock prices I thought I’d play that and see if 30 will hold again.  If not, I’ll just have to see about rolling it out.

I continue to make headway at reducing my basis by selling Calls on shares I own.  For example, I originally purchased NYX at 85, near its high.  I’ve collected 15.21 in net option premiums to reduce my basis to the current 69.79.  I’ve also collected about two years of dividends.  I’m still underwater, but as long as I can keep NYX from being called away I will one day own it way below its then current stock price.  That will make this a winning deal for me.

On 8/31/09, I sold 3 ZQK Feb10 Covered Calls for a net deposit of $47.74 in my taxable account.  My basis for these ZQK shares is now 10.03.

ZQK seems to be showing some signs of life again.  I read that they were able to negotiate an extension on the maturity of a large line of credit which was due on Jul 31.  They are apparently in negotiations for a new, larger 4 year line of credit to replace the existing which they expect to close by the end of September.

Since then, there have been some days with order imbalances on the NYSE on the buy side. 

Although these are encouraging signs my goal with ZQK, at least at this point, is to continue selling Covered Calls until I can get it called away above my basis.  I would reconsider if at that time the option premiums I am able to generate are in the 20% annualized range.  The lower my basis becomes the more likely that may be.

I am still struggling with my PC so decided to write a single post to document the Covered Calls that I rolled out on Aug09 Options Expiration Friday.  They are already stale but if I don’t get them documented now I’ll never stay caught up.  So, here goes:

I rolled all of these Calls out and several of them up.  I had to go out farther than I normally like to do in order to make these trades net credits to my accounts.

BTC 2 BMY Aug09 21 Covered Calls and STO 2 BMY Dec09 21 Covered Calls for a net deposit of $106.98 in an IRA account.  My basis for these BMY shares is now 19.13, excluding dividends received.

BTC 1 MWW Aug09 15 Covered Call and STO 1 MWW Dec09 17.50 Covered Call for a net deposit of $68.49 in an IRA account.  My basis for these MWW shares is now 49.79.  There are no dividends for MWW.

BTC 2 BA Aug09 45 Covered Calls and STO 2 BA Nov09 50 Covered Calls for a net deposit of $116.99 in an IRA account.  My basis for these BA shares is now 63.41, excluding dividends received.

BTC 5 BAC Aug09 17 Covered Calls and STO 5 BAC Nov09 20 Covered Calls for a net deposit of $172.46 in an IRA account.  My basis for these BAC shares is now 23.29, excluding dividends received.

BTC 3 CKR Aug09 10 Covered Calls and STO 3 CKR Mar10 12.50 Covered Calls for a net deposit of $60.49 in an IRA account.  My basis for these CKR shares is now 15.98, excluding dividends received.

BTC 2 MO Aug09 18 Covered Calls and STO 2 MO Dec09 19 Covered Calls for a net deposit of $34.99 in an IRA account.  My basis for these MO shares is now 35.81, excluding dividends received.

And that concludes the list of Aug09 options that I rolled out rather than allowing the underlying shares to be called away.  I live to fight another day.  Now I need to write a post about some new trades I’ve made since then.