Today, 8/27/10, I sold 4 VLO Oct10 18 Covered Calls for a net deposit of $82.92 in an IRA account.  My basis for these VLO shares is now 34.07, excluding dividends received.  This transaction represents a simple return of about .61% and an annualized return of about 4.48% on my basis.

S&P currently has reduced its 12 month target to $19 from $22 for VLO.  VLO has had a 52 week high of 21.54 and a low of 15.55.  It seems to have had a lot of resistance near or just above 21 over the past year but the trend has been down with recent resistance between $18.50 and $19.  My Aug Calls were written in Jun10 for the 20 strike and expired worthless.  I only went out 2 months again but lowered my strike by $2.  If need be I will be able to roll the October Calls out and possible up for an additional deposit in my account.

Since 2009 then I have received $160 in total dividends from VLO.  VLO reduced its dividend to .05 from .15 with its Mar10 payout.  I am hopeful that the higher dividend will be reinstated one day.  In the meantime I will continue to hold and write Covered Calls on the stock.