Today, 8/27/10, I sold 1 FCX Nov10 85 Covered Call for a net deposit of $100.22 in an IRA account.  My basis for these FCX shares is now 85.48, excluding dividends received.  This transaction represents a simple return of about 1.16% and about 5.02% annualized on my basis.

S&P currently has a 12 month price target of $95 on FCX.  I feel pretty comfortable selling the November $85 strike.  If necessary I think I will be able to roll the Call up and out without too much difficulty.

I like FCX and would like to own more of it.  To that end I have also sold a Nov10 75 Put on FCX which I have written about in earlier posts.  That Put is currently underwater but my basis on it would be 66.82 if assigned to me.  Even so, I may end up rolling that Put out and possibly down as I did near the end of April.  I want to own more but as cheaply as possible. 

As I noted in an earlier post, FCX has doubled its dividend to .30 per quarter.  I am really pleased to see that as dividends are one of the major reasons for me to own any particular stock.  I fully expect that FCX will continue to raise its dividend over the next few years as the world economy continues to improve.