July 23rd, 2008 at 12:52 pm
On 7/21/08, I sold 2 TIE Aug08 15 Calls for a net deposit of $40.50 in my taxable account. I now own these TIE shares at 26.71.
Can you hear that chipping sound again? TIE does pay a small dividend of .075 per share per quarter. At this time I don’t really track dividends as part of my total return on my various stocks so I don’t know what that is. I do know that I receive something over $10,000 per year for all of my stocks across my various accounts. So, any stock that contributes to that cannot be all bad, I guess.
July 23rd, 2008 at 11:44 am
On 7/21/08, I BTC 2 GM Sep08 25 Calls and STO 2 GM Dec08 25 Calls for a net deposit of $121.00 in my taxable account.
The Sep08 GM Puts may have turned out okay but I was feeling more than a little vulnerable with the potential assignments in my taxable account so wanted to generate some additional cash to help mitigate the problem if I start getting assigned. I would now own these GM shares at 20.76 if assigned.
I am still underwater in 3 other stocks in my taxable account (DSX, LVLT and RIO) which I may look to roll out also. All of these stock are up right now though. As they move up I feel less vulnerable. LVLT in particular is a stock I don’t really want to own though. I would really be okay if I was assigned the other two but would still prefer not to be assigned if possible.
One more thought in GM. Some of the incentive for me to own GM is now gone since GM suspended the dividend. The option premiums are still okay but the total return is now less.
April 22nd, 2008 at 4:56 pm
I sold 2 AA May08 37.50 Calls for a deposit of $170.50 in an IRA account. My basis is now $30 in AA.
You may have noticed that rather than roll them out I allowed 2 AA 37.50 contracts be put to me last week in an IRA account. My basis was a little over 30.00 so I felt comfortable owning it and selling covered calls. AA pays a small dividend of .17 per quarter for just under 2% at its current price of 35.70.
I can probably sell Covered Calls on AA for several months to come, even if I need to occasionally roll it out. I find that tactic generally returns me a decent return and is less stressful than monitoring Puts. Plus, I get to generate additional income via the dividends that most of the stocks I own pay.
