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.

As I expected, I was assigned my 4 Dec 15 BVF puts, although a little early on 12/20/07.  I really should have rolled it out once the stock fell below $14.00 as was my plan but of course I did not.  Sometimes life just gets in the way of plans.  I sold Apr 08 $15 calls for $209 in an IRA account.  The stock pays $1.70 annual dividends which is 11.46% based upon my invested capital.  The dividend along with call option premiums should yield me about 21% annualized.  That is slightly above my target of 20% annualized return and the dividend fits well with my investing goals.