BANK OF AMERICA - INVESTOR NUMBER 1 - NOT AVERAGING DOWN

This investor bought BAC in June 2008 when the stock had pulled back and he felt it was an excellent entry point.  

STRATEGY BEING EMPLOYED IN DOWNTREND:
A) Not averaging down
B) Selling Covered Calls Below Cost Basis and Break Even
C) Buying back covered call if above strike price
D) Reinvesting exercised amount, if exercised
E) No new capital will be employed
F) Keeping Income From Options & Dividends and not reinvesting it in BAC

Situation as of September 2009 Option Expiration. If Oct 18 calls are exercised investor will have lost $7974.00
Largest Capital Amount Committed to this trade at any one time - $33398.00
Below are the trades from June 2008 to September 2009 Options Expiration

STRATEGY BEING EMPLOYED IN DOWNTREND:
A) Will average down
B) Will only sell covered calls above cost basis - will use any gain on stock exercised, to reduce overall share price.
C) If no covered call premium, will purchase additional shares and sell calls against most recent share purchase
C) Reinvesting exercised amount, if exercised

Situation as of August 2009 Option Expiration. Investor has recovered from the downturn. Investor made a profit of $10205.00 Largest Capital Amount Committed to this trade at any one time - $26605.00

As a side note, this investor made enough money that on Aug 24 2009, he purchased 300 shares of BAC for $17.57 - for a total cost with commission of $5280.99. He spent about 55% of his profit from BAC to go back into the shares again. By using some of his profit he determined that his cost basis while 17.57, is actually zero as far as capital is concerned as his trades in this company since July 2008 have paid for these shares. This is what every investor strives for - a profit and lower overall cost.
 
Below are the trades from June 2008 to August 2009 Options Expiration