I have been working against a margin call in my taxable (and margin) account for most of the month.  In October I thought this was behind me but, as usual lately, I was wrong.  I have been using my weekly IRA redemption to increase the cash in the margin account but that wasn’t happening fast enough with the wild swings in the market.  So today the E*Trade margin department took action again.  This particular account is so demolished that I whatever they want to do is pretty much okay with me at this time.  They usually do what I would do anyway.  So…

Today I BTC 2 RIO Dec08 35 Puts at net cost of $5155.49.  That gives me a net loss of 23.47 per share.  Of course, I should have closed RIO out at least in Aug08 when RIO was about 30 but I was an optimist way too long.  I suspect that I was not alone.

Today I BTC 5 BRCD Jan09 10 Puts at a net cost of 3311.74.  That gives me a net loss of 6.19 per share.  Again, I should have closed BRCD out earlier, perhaps in Aug08 or again in Sep08 when it was just under 8.  Again, I was an optimist way too long and just did not believe that things would get so bad so fast.

After this I am still underwater in the account but can only do so much.  I suspect that there will be a bounce tomorrow since it is options expiration day.  I will be able to sell additional Covered Calls on the stocks that I still have in the account next week.