ETF Covered Calls

First week of July closed with a big down slide and I’m not surprised.   The ETF-Cashinator was showing a great deal of volatility for July back in June and I’m sorry to report that August and September have officially gone trash.   July is still volatile and I don’t think we’re headed for greener pastures.

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.

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July expiry will be here sooner than we expect as next Friday is a holiday and short week.    The ETF-Cashinator still shows some level of volatility but it’s tapered off a bit.   I’ve been keeping an eye on OIH and it’s back down below $100 so I may not get to cash out after all but what a ride!    Most of the ETFs I track have been fairly static and it’s becoming stable and repetitive enough that I am seriously considering getting back in the game from here.   I’ll see how July pans out and if it looks good, I might get back in the game in August.

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.

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I’m going to stick with my hypothesis that something BIG is going to happen in July with the market.   I’m not sure which direction things will turn but I do believe it will be very volatile.  It did occur to me that most states have their fiscal cycle run from July thru June so perhaps the bond market will go haywire.  Here are the ETF-Cashinator picks:

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.

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Talk about a long road to walk….the ETF-Cashinator is showing the same thing as last week: June and August expiry looks “normal” while July looks terrible. I still can’t make it out and since there is only 7 more days before June expiry, we’ll know soon enough what’s up with July. OIH is holding nicely above $110 and I hope it stays up there at least a few more weeks (July expiry)!

Here is the ETF-Cashinator and note how thin June high yield etf covered calls are and that’s the way it should be:

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.

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I’ve been keeping an eye on the price of oil and everyone is talking about it but I’m guessing it’s going to crash hard at some point.   The price of natural gas has barely budged and other commodities don’t seem to be surging either so I’m left to believe that there is paper demand and games being played with oil futures.   Unfortunately I’m in-the-money with my OIH options but I’m hoping OIH will stay above $110 so I can cash out.     The only caveat is if a major hurricane blows through the Gulf of Mexico between now and July expiry.   In other news, the US Treasury (10 year) market didn’t do too well today as yields spiked.   I think the Fed is double dipping again so we’re in for some pain…

Keep an eye out and be careful out there….

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.

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What a world we live in….the ETF-Cashinator is reporting something odd.   The June expiry calls/puts look “normal” but July looks highly volatile and August looks “normal” and I’ve never seen this before so I don’t know what to make of it.    In the past if options 60+ days out were out of whack then the subsequent months were out of whack.  If the options 30 and 60 days out were normal then the 90 day options were normal but July options look like pure garbage yet June and August look stable.     The only thing I can make of it are either:

1. The GM bankruptcy ripple effect will mestastasize in July.

2. The great Oil hope (big rally) will mestastasize in July.

3. The US Treasury market mayhem will mestastasize in July.

The scenarios may result in a big rally or a big fall for the markets which is why July looks so volatile, after July we’ll know if the market is headed for a tailspin and collapse in September or if we’re on our way to recovery and Dow 10,000 by end of December 2010.

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.

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Well this is interesting….OIH is approaching $110 and I if you recall, back in January I sold 4 OIHGV (July 09 $110) contracts. If OIH holds, I may end up getting called on OIH and I’ll cash out. I had been hoping for a rally in oil holders during the summer (peak usage) so hopefully I’ll sell 400 OIH @ $110 to revert to $44k in cash. If I don’t get called, it may be very profitable to sell October $110 strikes which are trading at $10 – that would be an additional 4k in profits!

As for the ETF-Cashinator, things are looking like they might be stabilizing once again but we’ve been down this road before too. Things are looking up slightly!

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.

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Hot off the presses!

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.

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I will likely be traveling this weekend so I’m not sure if I will be able to post the ETF-Cashinator report however, I am posting the data as of today and I don’t expect the data to vary too much.   There is still a great deal of volatility in the June ETF calls/puts and I still think there might be a sell off on Friday May expiry (tomorrow) but we’ll see what happens.

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.

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May expiry is here and there’s been some options shenanigans with the insurance industry but that’s an investigation for another day.   Whatever stability was showing up in the calls & puts from the ETF-Cashinator is now gone.  The June call and put premiums are all over the place (too high) to indicate any kind of stability.    I’m still sitting in cash.  Earlier in the year, I sold call options on OIH and those are showing fruitful but I don’t think oil will rally in the summer.  It’s going to be a cruel summer.

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.

© ETFCoveredCalls.com