Today, 4/23/12, I BTC 6 NYX Jan13 $35 Covered Calls and STO 6 Dec12 $30 Covered Calls for a net deposit of $414.90 in an IRA account.  My basis for these NYX shares is now $65.31, excluding dividends received.  This transaction represents a simple return of about 1.05% and an annualized return of about 1.57% on my prior basis.

When I originally sold the Jan13 $35 Calls I thought I might need to roll them out and possible up even though $30 or $31 have been pretty good strike prices for me in the past few of years.  Then there came the announcement that NYX would be “merged” with the German exchange.  To my great delight, hat merger fell through earlier this year.  As a result, I have been looking to do something with the Jan13 $35 Calls and finally decided to do something about them today.

S&P currently has a 12-month target of $31 and a hold rating for NYX.  MarketEdge currently has a price opinion of $26.86 an Avoid recommendation.  The 16 YHOO! Analysts have an average 12-month price target of $32.60 and a 2.6 recommendation where 1.0 is a Strong Buy and 5.0 is a Strong Sell.

Even though I am well underwater on NYX I rather like it.  The stock has a .30 quarterly dividend, which equals about 4.50% at the current price.  My return on basis is lower of course at about 1.82% as of the last payout in March.  On the plus side my return on basis continues to increase as the basis falls as a result of option premiums.

Many of the stocks that I own and write Covered Calls upon also pay dividends.  Dividends occur on a regular basis and add significantly to my annual investment income.  Year to date I have received a total of $2,785.01 in dividends in my various accounts for 2012.  My year to date average monthly dividends received is currently $928.34.  The year-to-date dividends currently represent about 30.84% of my average monthly investment cash flow and about 2.49% return on my current basis value.

My YTD dividends are up by $140.42 on a monthly average from last year.  That represents a 17.82% increase to date year over year.  I attribute the increased dividends to a few companies raising their dividends and to my purchasing additional dividend paying stocks.  During February, I received notice of the following dividends paid in various accounts for a total of $1,006.79.

Please notice that PGF is an ETF and pays dividends monthly.  The annualized dividend yield for PGF is based upon the simple and false assumption that it will pay the same dividend each month for the next 12 months.  The actual annualized dividend yield may be more or less than illustrated here.

The DCIX shares are ones I received as a split off from Diana Shipping (DSX).  I had thought about just selling them but there are so few and the trading cost would chew up so much relative to what I would receive that I decided to keep them, at least for now, and collect the little dividends that they throw off.

I use my basis per share to determine the simple and annualized percentage return because I feel that it gives me a better representation of the value of the dividends as they relate to my portfolio.  My basis may be above or below the market price which causes my return to be lower or higher than published yields for a stock.  I calculate my basis per share as my acquisition price less any option premiums received on those shares.  I do not use dividends to reduce my basis.

Many of the stocks that I own and write Covered Calls upon also pay dividends.  Dividends occur on a regular basis and add significantly to my annual investment income.  Year to date I have received a total of $9.454.95 in dividends in my various accounts for 2011.  My year to date average monthly dividends received is currently $787.91.  The year-to-date dividends currently represent about 28.59% of my average monthly investment cash flow and about 2.14% return on my current basis value.

My YTD dividends are up by $183.64 on a monthly average from last year.  That represents a 30.39% increase to date year over year.  I attribute the increased dividends to a few companies raising their dividends and to my purchasing additional dividend paying stocks.  During October, I received notice of the following dividends paid in various accounts for a total of $832.89.

Please notice that PGF is an ETF and pays dividends monthly.  The annualized dividend yield for PGF is based upon the simple and false assumption that it will pay the same dividend each month for the next 12 months.  The actual annualized dividend yield may be more or less than illustrated here.

The DCIX shares are ones I received as a split off from Diana Shipping (DSX).  I had thought about just selling them but there are so few and the trading cost would chew up so much relative to what I would receive that I decided to keep them, at least for now, and collect the little dividends that they throw off.

I use my basis per share to determine the simple and annualized percentage return because I feel that it gives me a better representation of the value of the dividends as they relate to my portfolio.  My basis may be above or below the market price which causes my return to be lower or higher than published yields for a stock.  I calculate my basis per share as my acquisition price less any option premiums received on those shares.  I do not use dividends to reduce my basis.