Hi Demond,
A couple of points to consider:
1) When you lower your cost basis by subtracting the premium, you must increase the cost basis when you buy the option back.
In this case, you have to increase the cost basis for the underlying by $1 when you buy the June Call on 18 Jun.
You can't just count the winners. 
2) You have to know that you're taking on risk when you do anything in the market. So, when you sell a call, you risk that the call will increase in price (as the stock increases). So be careful of "booking the premium" as profit, when it could turn into a loss.
Of course, you can just deliver the stock, and that will let you keep the profit and any (possible) capital gain.
3) So... when you sell the Jan calls, for $73, can you really say the premium has been "earned" and you have the money? Not really, because a lot can happen between now and Jan.
I like to recalculate my adjusted cost basis when the option expires (or I sell it). That way I don't fool myself into thinking that I could (for example) sell S at $450 and make a profit because the "new cost basis" is $439. It's not $439 until Jan rolls around.
Remember that selling a call obligates you to deliver some stock if the other party exercises. And it's all his choice.
--Just some points to keep in mind.
Bill
--- In ConservativeOptionS
>
> Hello Everyone,
>
> My name is Demond Johnson. I am 37 years old and I am form Phoenix Az. I want to say thanks for adding me to the group, and look forward to trading ideas investing. I did a covered call on Sprint last month. Here is the trade break down.
>
> On May 27th, 2010, I purchased 100 shares of Sprint for 527.95 (Comm. included), I then sold a 5 dollar June Call for 23.03. This reduced my original cost basis down to 504.92 dollars. (The Math: 527.95-23.03=
>
> On June 18th, 2010, Sprint (S) was below 5 dollars. The value of 5 dollar June call was now 1 dollar. I closed the position for 4.48 (1+ 7.48 comm.)and got 14.54 after commission. This equaled an uncalled return of 2.8% for the month (The math(14.54/504.
>
> Because the July calls did not yield atleat 2%, I sold the 5 dollar Jan 2011 Calls for 73.51 after commission. My cost basis has now been reduced from 504.92 down to 439.49(The math:(504.92+
>
> Anyway, Thanks for your time and I look forward to seeing the learning what other members of the group are doing. Have a great Day.
>
> Sincerely,
>
> D. Johnson
>
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