This is a play on SFAS 159, which is expected to turn a $22/share loss into a $4-$5 gain when earnings are announced.  More can be read over at Seeking Alpha.  For those that never heard of SFAS 159, it allows a company to do a fair value declaration of their assets and losses.  Prior to SFAS 159 going into effect, AFN had to take a $1.2 billion writedown on the investments in their collateralized debt obligation portfolio, even though their actual investment was only $120 million.  As of January 1, the loss will only be the $120 million invested.

It should also be noted that AFN directors have offered dividend guidance of $0.25-$0.30/share per quarter for all of 2008.

No covered call on this lot here.  I'll wait until my May option on my existing shares expires before writing any more calls here.