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.

Today, 5/23/11 I sold 3 MWW Dec11 18 Covered Call for a net deposit of $241.72 in an IRA account.  My basis for these MWW shares is now 22.12.  This transaction represents a simple return of about 3.53% and an annualized return of about 6.19% with 208 days to expiration.

Thomson Reuters continues to rate MWW as Negative while S&P has a 12 month price target of 24.00 and continues it Buy rating.  Both Thomson Reuters and S&P have a 100% accuracy in rating MWW price movement over the past year so it is curious that one has a Negative rating while the other has a Buy rating.  Market Edge Second Opinion has a price opinion of 16.72, up from 19.52, and has increased its rating to Long as of 5/16/11.

I have considered just selling my MWW shares but decided to go ahead and continue selling Covered Calls and collect that premium.  The Calls keep expiring worthless and I am glad at this point that I decided to keep the shares and sell the Calls.  For the second time in a row the most recent Calls are for a $1 higher strike price than last time and once again I have collected a larger premium than last time.  If the economy actually begins to perform better, in particular if companies begin to hire again, then I think MWW stands a good chance to do well again.  I selected the Dec11 expiration month because it returned the greatest annualized return at the $18 strike price.

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.  In fact, I can say that if I can continue to get this same annualized return that I will attempt to hold the stock and sell Covered Calls as long as I can.

Today, 5/18/11 I BTC 1 MWW May11 16 Put and STO 1 Sep11 15 Put for a net deposit of $35.49 in an IRA account.  My basis for these MWW shares would now be about 14.39 plus trading costs.  This transaction represents a simple return of about 2.33% and an annualized return of about 6.98% with 122 days to expiration.

I currently have 3 MWW May 17 Covered Calls in this account.  My original thinking for selling the May 16 strike was is that if MWW rises above 17 by expiration I will roll them out and the Put will expire worthless.  If MWW continues to trade between16 and 17 as it is at the moment then both the Puts and Calls will expire worthless and I will sell new Covered Calls on the existing 300 shares.  Or, if I am assigned the Put I will be able to combine the new shares with the existing 300, reduce my basis on the entire lot, and then sell Calls on the 400 shares.  However, as MWW sank below 15 I began to reconsider.  It appears that almost certainly MWW will close below 17 on Friday meaning that my Covered Calls will expire worthless.  So I did a quick look ahead to see where I would most likely sell new Covered Calls and decided that September appeared like a good month with the 17 strike price bid at 75 cents as of this writing.

Thomson Reuters continued its rated MWW as Negative on 5/17/11 while S&P continues its 12 month price target of 24.00 and its Buy rating.  Market Edge Second Opinion has lowered its price opinion to 16.72 from 17.11 and continues its Long rating as of 5/16/11.  The Yahoo! analysts have continue a 12 month price target of 22.65 and have increased their rating to 2.2 from 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.