October 17th, 2008 at 12:06 pm
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.
June 25th, 2008 at 5:21 pm
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.
May 20th, 2008 at 7:44 pm
Below are the results of my May08 option holdings. All are expirations except for the ACI contract which was assigned. I evaluated rolling the ACI contract out but it was too far in the money make it worthwhile. I originally purchased these ACI shares at $40 and owned them at $36.31 so I don’t feel to bad about them being called away. I should point out that some of the amounts in the “Total Received” column are larger than you might expect because they are the result of rolling out a previously owned Put or Covered Call.
|
Stock Symbol
|
Option Symbol
|
Call/Put
|
Bought / Sold
|
Strike
Price
|
Status
|
Number of
Contracts
|
Total Received
|
|
PM
|
PMEK
|
Call
|
Sold
|
55.00
|
Expired
|
2
|
10.50
|
|
IMB
|
IMBEA
|
Call
|
Sold
|
5.00
|
Expired
|
2
|
10.50
|
|
SGP
|
SGPQW
|
Put
|
Sold
|
17.50
|
Expired
|
3
|
109.75
|
|
GM
|
GMQT
|
Put
|
Sold
|
17.50
|
Expired
|
2
|
54.50
|
|
TBI
|
TBIEC
|
Call
|
Sold
|
15.00
|
Expired
|
4
|
231.00
|
|
SGTL
|
LWQAA
|
Call
|
Sold
|
5.00
|
Expired
|
18
|
338.50
|
|
GGC
|
GGCEB
|
Call
|
Sold
|
10.00
|
Expired
|
6
|
197.50
|
|
COP
|
COPQQ
|
Put
|
Sold
|
85.00
|
Expired
|
1
|
981.24
|
|
WM
|
WMEZ
|
Call
|
Sold
|
16.00
|
Expired
|
1
|
18.25
|
|
GM
|
GMEE
|
Call
|
Sold
|
25.00
|
Expired
|
6
|
473.50
|
|
CSX
|
CSXQI
|
Put
|
Sold
|
45.00
|
Expired
|
2
|
1310.48
|
|
CSX
|
CSXQL
|
Put
|
Sold
|
60.00
|
Expired
|
2
|
260.50
|
|
OLN
|
OLNQD
|
Put
|
Sold
|
20.00
|
Expired
|
3
|
739.74
|
|
TIE
|
TIEQC
|
Put
|
Sold
|
15.00
|
Expired
|
4
|
189.00
|
|
MO
|
MOEX
|
Call
|
Sold
|
22.50
|
Expired
|
2
|
50.50
|
|
WFC
|
WFCQY
|
Put
|
Sold
|
27.50
|
Expired
|
2
|
210.50
|
|
SGP
|
SGPQC
|
Put
|
Sold
|
15.00
|
Expired
|
3
|
130.75
|
|
GOL
|
GOLEW
|
Call
|
Sold
|
17.50
|
Expired
|
2
|
30.50
|
|
YHOO
|
YHQEF
|
Call
|
Sold
|
30.00
|
Expired
|
4
|
329.00
|
|
BAC
|
BACEH
|
Call
|
Sold
|
40.00
|
Expired
|
2
|
86.50
|
|
ACI
|
ACIEI
|
Call
|
Sold
|
45.00
|
Assigned
|
1
|
951.25
|
|
FCX
|
FCXQS
|
Put
|
Sold
|
95.00
|
Expired
|
1
|
1191.24
|