November 2nd, 2008 at 3:29 pm
I sold 4 FNM Mar09 2.50 Covered Calls on 10/22/08 for a net deposit of $37.00 in an IRA account. My basis for these FNM shares is now 8.72 excluding dividends received.
FNM is no longer paying any dividends since the Feds stepped in and established a conservator-ship. I am actually confused as to what exactly that means to me as a stock holder. The same with FRE. Both stocks continue to trade and I continue to be able to sell Covered Calls on them. I guess I’ll continue to do so until I can (if I can) recoup my investment.
November 2nd, 2008 at 1:33 pm
I sold 4 FRE Jan09 3 Covered Calls on 10/20/08 for a net deposit of $29.00 in an IRA account. My basis on these FRE shares is now 7.76.
Since the Feds came in and became the conservator for FRE they are no longer paying a dividend. My only interest in FRE now is to get back to even and get out. I could get out now but since this is an IRA account I cannot use the losses so have decided to continue to work it off with covered calls for as long as I can. Besides, I have enough losses in my taxable account to last me for a life time. 
August 23rd, 2008 at 1:02 pm
On 8/18/08 I STO 4 FRE Sep08 6 Covered Calls for a net deposit of $189.00 in an IRA account. My basis for this lot of FRE shares is now 7.83.
200 of these FRE shares were put to me as a result of the Aug08 option expiration. I purchased 200 of the FRE shares late in July and sold Covered Calls on them then. So now I have 400 FRE shares in this IRA account.
My thoughts about FRE are much like those I have for FNM which I just wrote about. FRE has not cut its dividend but I suspect that it is just a matter of time. If not, then so much the better.
As with FNM, I will continue to hold and sell Covered Calls on FRE while I wait to see what develops. This activity is also a gamble. On a side note, I tell myself that I should not do these kind of trades but sometimes it seems I just cannot help myself. It adds an element of excitement to the process.