Today, 2/28/12 I bought 200 additional shares of MWW (at a net cost of $6.73 per shares) to increase my holdings to 500 shares and to average down my basis.  I then sold 5 MWW Jan13 $10 Covered Calls for a net deposit of $138.19 in an IRA account.  My basis for these MWW shares is now $14.41.  This transaction represents a simple return of about 1.88% and an annualized return of about 2.11% with 326 days to expiration.

I would have preferred to sell a closer expiration month but just got impatient waiting for MWW to move high enough to sell the $10 strike for a decent premium.  MWW is selling at $6.69 as I write this and I suspect at this time that the Jan13 options will probably expire worthless.  I think I could easily roll out the Jan13 options to if it appears that MWW will be in the money as expiration approaches.

My current feeling is a turn around from just a little over one month ago.  In January, I sold the Feb12 $10 strike thinking I might need to roll them out.

S&P has a 12-month price target of $6, down from $12.00 in January, and now has a Sell rating from an earlier Buy.  Market Edge Second Opinion has a price opinion of $7.22, slightly down from $7.92 last month, and has an Avoid rating, down from Neutral.  The 13 Yahoo Analysts that cover MWW have a 12-month price target of $10.88, down from $12.81 last month, and a mean recommendation of 2.7, down from 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.  Purchasing the additional shares will help me to achieve either of these goals.

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.