Options expiry is here! Let’s take a brief look at some trades:
FAZ 100 40 Jan 21, 2011 $ 650
FAZ 400 42 Dec 17, 2011 $ 1540 (Assigned)
XME 200 50 Dec 17, 2011 $ 476 (Expired)
XOP 200 52 Dec 17, 2011 $ 454 (Expired)
FAZ 100 39 Jan 21, 2011 $ 655
FAZ 200 42 Dec 9, 2011 $ 516 (Expired) – Rolled to January 21, 2011 for $1,000
FAZ 200 40 Dec 17, 2011 $ 543 (Assigned)
I went back and did the math and for my cash account, I earned $5,250 from Oct 27 thru Dec 17 options expiry. In my power account, I made $2,500 so the total from both accounts was a little over $7,500.
So what does the future hold? The ETF Matrix Report shows heavy put premiums on commodity (oil) and commodity heavy country ETFs so that’s the canary in the tar pit choking on economic fumes…
Most of my FAZ holdings have been assigned and I’m back in cash. I still hold some FAZ for January expiry and if FAZ dips below $39 I may buy 100 share blocks and sell the January at-the-money strikes respectively. As for XOP, the January $52 strikes are selling for $1.70 which is good for another 3% return on money while the XME $50 strikes are selling for $2.07 which is good for another 4% return on my money which is probably what I’ll trade on Monday although if they do rally on Monday I might just sell off. I am still pessimistic on this market thru January.
Here’s the link to ETF Covered Calls.
Here’s the link to ETF Naked Puts.
ETF Covered Calls website is for educational and entertainment purposes only. Any investment activity is not without risk including loss of principal. Neither this website nor its authors assume any responsibility arising from the use or misuse of any information presented in this blog. You are urged to contact a financial adviser before making any investment decisions. Past performance is no indication of future performance.