The E*Trade margin department came in with virtually no notice again on 10/16.  They normally allow 3 days to satisfy a margin call but this one happened so fast that it was done before I even saw that the call existed.  They are really getting nervous.  So, here is what happened this time:

BTC 2 HOG Nov08 42.50 Covered Calls for a net profit of $531.01.

BTC 2 FCX Jan09 50 Covered Calls for a net profit of $1920.94.

BTC 2 PNRA Nov08 Covered Calls for a net profit of $511.01.

Sold 200 HOG for $4991.98 for a net loss of 6560.02 on the stock.

Sold 200 FCX for $6805.97 for a net loss of 194.03 on the stock.

Sold 200 PNRA for $8051.96 for a net loss of 3160.04 on the stock.

I am a little disappointed in how quickly E*Trade took action this time.  I would also have been a little happier if they had BTC some of my open Puts.  I know they need to protect themselves and I am responsible for the decisions that led me here but I still feel a little violated.  Oh, well this too shall pass.

Today I BTC 1 FCX Jul08 90 Call and STO 1 FCX Jan09 95 Call for a net deposit of $167.50 in an IRA account.

I originally purchased these FCX shares at 100.  My basis is now 87.05 after accumulated option premiums and excluding dividends received.  I like to hang onto FCX so took advantage of an early morning dip to roll the call out and up to a strike of 95 from 90.  FCX ended the day up 1.74.  If I should get called away I will have gained an additional $500 in addition to the 167.50 I gained today.

I like FCX as a long term holding.  It pays .4375 per quarter dividend which equates to about 1.5% at current valuation.  The dividend rate is not great but it is consistent.  I also like that the option premiums are such that I can pretty consistently roll them out and occasionally up as in this case and continue to make money.