Yesterday, 1/23/12 I sold 3 MWW Feb12 10 Covered Calls for a net deposit of $34.73 in an IRA account.  My basis for these MWW shares is now $20.00.  This transaction represents a simple return of about .57% and an annualized return of about 8.07% with 26 days to expiration.

I would have preferred to sell a higher strike price but did not want to go too far out to do so.  MWW is selling at $8.66 as I write this and could easily be at the $10 level by February expiration.  I am under water here so I would probably try to roll the Feb12 options out and up if possible.

I did have 1 MWW $9 Covered Call assigned away from me last week.  The stock closed at exactly $9, which makes it a toss-up if it will be assigned.  I had really expected that they would all be called away because I was not able to roll the Jan12 Calls out at a net credit.  As it turns out I got lucky…I think…and am able to continue selling Covered Calls and at a $1 higher strike.

S&P continues a 12-month price target of $12.00, and continues a Buy rating.  Market Edge Second Opinion has a price opinion of $7.92 has a Neutral rating.  The 13 Yahoo Analysts that cover MWW have a 12-month price target of $12.81 and a mean recommendation of 2.2 where 1.0 is a Strong Buy and 5.0 is a Strong Sell.

MWW does not pay a dividend and has been somewhat of a laggard in my accounts but that is probably a function of the economy as much as anything.  Eventually I expect that I will let MWW be called away from me…unless of course my basis is so reduced that my option premiums tempt me to continue holding onto it.

Today, 12/19/11 I sold 4 MWW Jan12 10 Covered Calls for a net deposit of $28.97 in an IRA account.  My basis for these MWW shares is now $20.12.  This transaction represents a simple return of about .36% and an annualized return of about 4.09% with 32 days to expiration.

I would have preferred to sell a higher strike price but did not want to go too far out to do so.  MWW is selling at $7.53 as I write this and could easily be at the $10 level by January expiration.  I am under water here so I would probably try to roll the Jan12 options out and up if necessary.

S&P has a 12-month price target of $12.00, up from $10.00 when I last wrote, and continues a Buy rating.  Market Edge Second Opinion has a price opinion of $7.97, down from $9.10, and currently has a Long rating, up from an earlier Neutral.  The 13 Yahoo Analysts that cover MWW have a 12-month price target of $12.81 and a mean recommendation of 2.3 where 1.0 is a Strong Buy and 5.0 is a Strong Sell.

MWW does not pay a dividend and has been somewhat of a laggard in my accounts but that is probably a function of the economy as much as anything.  Eventually I expect that I will let MWW be called away from me…unless of course my basis is so reduced that my option premiums tempt me to continue holding onto it.

Today, 9/19/11 I sold 1 MWW Dec11 11 Covered Call for a net deposit of $19.24 in an IRA account.  My basis for these MWW shares is now 14.40.  This transaction represents a simple return of about .78% and an annualized return of about 2.37% with 120 days to expiration.

These shares are the ones that I were Put to me last week.  I didn’t really want them assigned to me but decided that since the money was tied up anyway that I could do better selling Calls on the shares than rolling them out and just buying to close the position was just not an option for me.  I chose the December options because I already have 3 Covered Call contracts in this account that will also expire in December.  I am anticipating combining these shares with the other 300 to average down my basis.

Thomson Reuters currently rates MWW as Neutral while S&P has a 12 month price target of $10.00 and continues it Buy rating.  Market Edge Second Opinion has a price opinion of $9.10 and currently has a Neutral rating as of 9/16/11.  The 13 Yahoo Analysts that cover MWW are a little more optimistic on average with a 12 month price target of $16.96 and a mean recommendation of 2.3 where 1.0 is a Strong Buy and 5.0 is a Strong Sell.

MWW does not pay a dividend and has been somewhat of a laggard in my accounts but that is probably a function of the economy as much as anything.  Eventually I expect that I will let MWW be called away from me…unless of course my basis is so reduced that my option premiums tempt me to continue holding onto it.