Yesterday I BTC 5 AUY Oct09 8 Covered Calls and STO 8 AUY Jan12 10 Covered Calls for a net deposit of $602.45 in three IRA accounts.  My basis for these AUY shares is now 7.63, 8.17 and 9.45, excluding dividends, in the various account.

As I pondered all of the money that the Feds have pumped into the economy and some of the possible implications I can only come to the conclusion that gold and gold companies will continue to rise for awhile.  That is one of the reasons that I went so far out with the Calls that I wrote to replace those that I BTC.  Other reasons are that these transactions generated positive cash flow now and, along with the current premiums, reduced my basis below the new strike price.  I will continue to collect the .01 premium while I hold the stock.    With any luck, the premium may increase.