selling VZ covered calls

The VZ, Verizon story so far per this blog can be read in these postings :

Monday, July 07, 2008 - covering shorts in XLY +16%, SPG +17% . long VLO, VZ

Tuesday, December 09, 2008 - selling BTU and VZ covered calls, shorting GCI

Tuesday, March 31, 2009 - long ZSL, closing VZ covered call position

If from our effective cost of $33.93 we subtract the dividends we've enjoyed so far (and also factoring the declared dividend to be paid November 02), we then revise the effective cost of our Verizon shares (as of November 02) to $31.62

Against our shares we'll now sell April $30 calls which were last bid at $1.70

The premium earned here via the sale of April calls will reduce our effective cost below the strike price, thus preventing a possible overall loss on our holdings if our shares are called away.

If our shares are not called away, we'll update as we take additional action. Our plan is to continue reducing our effective cost via covered call sales when the timing seems right.



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