Trade continuation: GLD covered call

I rolled GLD calls in a taxable account as follows:

11/10/2011  09:41:06         Bought 4 GLD Nov 19 2011 162.0 Call @ 10.3        -4,133.04              
   
11/10/2011  09:42:52         Sold 4 GLD Dec 17 2011 163.0 Call @ 11.2            + 4,466.87    

These calls are deep in the money. I got to have my cake and eat it too. I was able to roll up another dollar in strike price and get paid $333.83 for doing so. At some point if GLD takes off too much I can see this yumminess coming to an end. It's pretty amazing that I can roll when this deep in the money and the extreme downside protection helps this gal sleep like a baby at night.  

Trade continuation: GLD Gold ETF covered call

BTC 2 GLD Oct. 28 163's @ 5.15
STO 2 GLD Nov. 19 165's @ 5.95

This is another example of rolling out a short time period and having your cake and eating it too. GLD had a nice run up to ~169 and we were able to write new covered calls that allow us to participate 2 more dollars per share on the increase and bring in income of $80 per contract. This lowers our cost basis by .80 and provides .80 more downside protection. In addition the expiration date for these calls is only 3 weeks out.

I will only roll out a covered call if it brings in income. Chasing price increases and paying for that right brings Don Quixote to mind...