I sold 2 MO Nov08 22 Covered Calls on 10/22/08 for a net deposit of $46.50 in an IRA account.  My basis for these MO shares is now 37.03 excluding dividends received.

Actually, my basis has been a little hard for me to calculate because of the KFT and PM spin-offs.  I am using the 37.03 number as an estimate just to have something to track against.  This is in an IRA account so I don’t need to have a real number for tax purposes.

MO pays a pretty good dividend at .32 for the last quarter and and annualized 6.68%.  I consider it part of my long term core holding and would roll out if the 22 strike price is threatened.

On 8/20/08, I sold 2 MO OCt08 22 Covered Calls for a net deposit of $46.50 in an IRA account.  My basis for MO is now 37.26.

I sold Oct08 calls rather than Sep08 calls because I don’t want it called away and wanted to get a little better premium than the Sep08 calls offered.

I have owned MO for some time now.  I acquired both KFT and PM from spin offs from MO.  My basis for MO is probably too high because I didn’t do a good job adjusting it when KFT and PM were spun off.  In any case, my intent is to continue to own MO, collect its .29 per quarter dividend and collect option premium every one or two months.

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.