Yesterday I was assigned 3 AUY Jan09 35 Puts.  I sold 3 AUY Oct08 15 Covered Calls for a net deposit of $109.75.  My basis for these AUY shares is now 31.89.

As you can see, this was not something I really wanted to buy just now but…

TIE does pay a small dividend of .075 per quarter which translates to about a 2.56% return on its current price of 11.46.  That wouldn’t be so bad but as I said, I own it at 31.89.

I believe TIE is down (and has been for most of the past 12 months) is because aerospace is not using as much titanium as it once did.  Other lighter materials have replaced titanium in some components.  Also, I have to think that as the airlines reduce their routes there is less of a need for new aircraft thereby further reducing the amount of titanium that they use.  I also see comments and news bytes that TIE is up on increased metal prices and then a few days later that TIE is down on lower metal prices.  I can only suppose that the price movement has something to do with demand for the metal.

On 8/25/08, I sold 4 TIE Sep08 15 Covered Calls for a net deposit of $29.00 in my taxable account.  My basis for these TIE shares is now 29.49.

200 of these TIE shares were put to me on 8/25/08 as a result of assignment of 2 TIE Jan09 30 Puts that I had sold (and rolled out) some time ago.  The basis is the average of the recently acquired and the previously owned TIE shares.

TIE does pay a small dividend of .075 per quarter.  That’s nothing to get excited about though.  Neither are the option premiums that I am collecting.  However, I intend to continue to chip away at my basis.

It is a little humorous that I held off selling these Calls waiting for TIE to rebound some from its recent low of 10.  The recent Put assignment caused me to quit waiting.  The humerous part is that TIE has been moving up quite nicely since then.  It’s almost as if somebody was playing a trick on me. 

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.