on 1/19/2010, I sold 2 RYL Mar10 25 Covered Calls for a net deposit of $68.46 in an IRA account.  My basis for these RYL shares is now 32.80, excluding dividends received.

I chose the 25 strike price because it appears to be near a resistance level for the past 14 months or so.  I don’t what RYL called away because, as you can see above, I am underwater on it.  I think the 25 strike price will probably hold and allow my March Calls to expire worthless and I can sell new Calls on RYL.

RYL pays a .03 quarterly dividend, down from .12 in 2008, so it does satisfy my core goals of owning dividend paying stocks.  However, that is less than 1% annually so it is not helping much to get me to my goal of 10% per year annualized return on my investment basis.

There is good news though on the home building front.  Well, sort of anyway.  I heard on the radio today that the number of foreclosures dropped last month in California.  I also understand that the national unsold inventory of existing housing continues to fall.  There is just such a high plateau to fall from.