Today, 5/21/12, I sold 1 FCX Jul12 $39 Covered Call in my taxable Account for a net deposit of $12.24.  My basis for these FCX shares is now $37.19.  This transaction represents a simple return of about .33% and annualized return of about 1.96%.

This is the next in a continuing series of Covered Call transactions on FCX shares that I purchased and upon which I am selling Covered Calls with the intent that they be called away.  In this case, I acquired these FCX shares when my Apr12 $38 Put was assigned to me.  I decided to sell the $39 Call to make a little extra when the shares are eventually called away from me.  I would like to be selling weekly Calls but FCX is just not cooperating right now.

These FCX trades have worked quite well for me so far.  The Covered Calls sometimes expire worthless (not my original intent) but FCX is volatile enough that I am confident that I will eventually sell them at a profit. As long as I can continue to sell near term Covered Calls above my acquisition price I do not care if they are ever called away. 

S&P currently has a 12-month price target of $46 on FCX with a Buy recommendation.  MarketEdge continues a price opinion of $38.56 and an Avoid recommendation.  The 19 Yahoo analysts have a 1-year price target of $52.86 and a 1.8 recommendation where 1.0 is a Strong Buy and 5.0 is a Strong Sell.

Today, 4/23/12, I sold 1 FCX May12 $39 Covered Call in my taxable Account for a net deposit of $48.24.  My basis for these FCX shares is now $37.31.  This transaction represents a simple return of about 1.28% and annualized return of about 17.91%.

This is the next in a continuing series of Covered Call transactions on FCX shares that I purchased and upon which I am selling Covered Calls with the intent that they be called away.  In this case, I acquired these FCX shares when my Apr12 $38 Put was assigned to me last weekend.  I decided to sell the $39 Call to make a little extra when the shares are eventually called away from me.  I considered selling the weekly Call expiring this Friday at the $38 strike but ended up deciding on the May option, partly because I used margin to buy this shares and want the extra revenue to help pay for the carrying costs.

These FCX trades have worked quite well for me so far.  The Covered Calls sometimes expire worthless (not my original intent) but FCX is volatile enough that I am confident that I will eventually sell them at a profit. As long as I can continue to sell near term Covered Calls above my acquisition price I do not care if they are ever called away. 

S&P currently has a 12-month price target of $46 on FCX with a Hold recommendation.  MarketEdge continues a price opinion of $38.56 and an Avoid recommendation.  The 19 Yahoo analysts have a 1-year price target of $52.74 and a 1.8 recommendation where 1.0 is a Strong Buy and 5.0 is a Strong Sell.

Today, 4/18/12, I sold 1 FCX Apr12 $38 Put in a non-IRA Account for a net deposit of $41.24.  My basis for these FCX shares, if Put to me, would be about $37.73.  This transaction represents a simple return of about 1.08% and annualized return of about 197.43% with 2 days to expiration.

This is the latest in an occasional series of transactions that I am playing on FCX.  I don’t expect to be assigned these shares but, if I am, I will begin to sell Covered Calls on them with the goal of having them called away at a profit.  I expect that I will be able to sell the weekly Covered Call for this strategy.

These FCX trades have worked quite well for me in the past.  I especially like it when I can sell the weekly Covered Calls that expire worthless.

S&P currently has a 12-month price target of $46 on FCX with a Hold recommendation.  MarketEdge has a price opinion of $38.56 and an Avoid recommendation.  The 19 Yahoo analysts have a 1-year price target of $53.79 and a 1.9 recommendation where 1.0 is a Strong Buy and 5.0 is a Strong Sell.