On Friday, 8/21/09, I BTC 2 RYL Aug09 21 Covered Calls and STO 2 RYL Jan10 25 Covered Calls for a net deposit of $36.98 in an IRA account.  My basis for these RYL shares is now 32.96.

Not only did I roll out my RYL options I raised my strike price from $21 to $25.  I had to go out to Jan10 in order to roll up with a positive cash flow.  A risk is that RYL will rise above 25 by Jan10 expiration.

RYL is selling at about 22.91, down .84, as of this writing.  As you may note, I am underwater on this stock so did not want it called away.  RYL also pays a small dividend of .03 per share.  I expect the stock price and the dividend to increase as the housing market improves.  In the meantime, as I am doing with most of my stocks, I am decreasing my basis through option premiums.