Sold FCX Covered Calls

While FCX was trading at $29.28 I covered my 200 shares of FCX by selling two November 35 covered calls (FCXKG) at market for 0.81 each and received $150.50 after commissions.  I sold the calls only 12 days away to give me quick erosion of time value.  I picked the strike more than $5 out of the money to give me more of a chance to gain if we get a quick rally within the next two weeks.  I didn’t wait longer because I saw today was headed south.  I made my trade at 9:49 am and apparently should’ve gone lower as FCX is falling more and more still.

I just have to laugh at some of this stuff.  I bought new shares of DRYS at the beginning of the week because it surprised me and ran higher than I thought it would.  Since then DRYS has dropped $6.00+ moving my naked calls to out of the money and moving my naked puts back in the money and I own another 200 shares.  Not smart.

I also saw oil dropping and thought $50 might be a floor for USO.  Instead of waiting for it to get down there I sold new USO naked puts and now that USO dropped to my price target, I’m sitting on in the money puts.  At least my USO naked calls are looking very good now.

I’ll be on vacation and driving on Monday and Friday so I won’t have access to the markets to react to anything.  That might be good based on my lack of trading skills lately.  I’d like to hide behind my upcoming vacation as the reason I made these two trades on DRYS and USO, but if that was 100% true I should have waited until today instead of pulling the trigger earlier in the week.