ETF Covered Calls

Looks like the economy is on stable footing or at the very least, investors are bullish on oil, housing, and semiconductors as they lead the ETF-Cashinator™ high yield returns for January 07 Buy-Write trades.   Click the image to see the report and happy hunting.

This 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 results.

It’s Thanksgiving Holiday and I’ll be celebrating with friends and family as most of you will but before I’m off to stuff myself I decided to power up the ETF-Cashinator™ to see what ETF Covered Call opportunities exist for December 06 and January 07.

Because the volume of information I deal with is so great, I have to break down the reports into two separate databases and run the reports separately so you’ll usually see two reports. I am in the process of consolidating so please be patient.
As of Wednesday night November 22nd 2006, the ETF-Cashinator™ highlighted these potential high yield returns on these select ETFs.

For December 06, XHB (Hombuilders ETF) is yielding a little over 3%.

For January 07, XHB and SMH are yielding between 3% to 5% depending on the ETF appreciation. But the hottest ETF is still GDX where January 07 calls in-the-money or near-the-money are returning 3.75% to 6.6% depending on the appreciation.

This 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 results.

I just sold two more contracts on GDX for December $39 Calls for $0.90 each earning a cool 4.28 pct inside my mini-account. If I get called at $39, I’ll earn an additional 1 pct on top of that but that’s not a bad return for 4 weeks out till December expiry.

I’ve run the ETF-Cashinator™ today on November 17, 2006  to look for opportunities in December  and January.  The report has yielded the following  opportunities as of today.

For December 06, PBW is yielding 4 pct returns for buy-writes on PBW buying at $17.95 and selling $18 call strikes for $0.75.

For January 07, the ETFs get a little more interesting as HHH and SMH are yielding 4% for January 07 strikes at buy-write levels.

As always, do your due diligence and proceed cautiously.

This 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 results.

Back in early November I bought 200 shares of GDX at $38.50 and sold 2 call contracts for November $38 strikes for $1.30. This yielded me a quick 4% profit in a 17 day window. Today those calls expired worthless so I’ll have the opportunity to sell December $38 or $39 calls for $1.05 or $0.65 respectively earning an additional 3 pct with less than 30 days out. Because GDX has been so volatile and because I believe gold will rise I wait for the right opportunity at the next leap up to sell those calls for additional profit.

It’s ETF Covered Call Report Friday and GDX & XLE & PBW continue to be hot for December Calls. Today’s ETF-Cashinator™ report shows a 4 pct to 5 pct return range for buy-write transactions on December 06 Calls for in-the-money trades. A slightly more conservative ETF IWO (Russell 2000 Index) is yielding 4 percent also. Click images below to see reports.

A word of caution: Both of these ETFs have been trading with a great deal of volatility lately and could come slamming down if the Fed raises rates at their December 12th meeting or OPEC does something interesting after the US election.

This website is for educational and entertainment purposes only. Any investment activity is not without risk including loss of principal. Neither this website nor it’s 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 results.

After watching GDX for the past few weeks and it consistently showing a top pick in my ETF-Cashinator™ I decided to Cashinate via ETF Covered Call. I did a buy-write and purchased 200 shares of GDX at $38.50 and immediately sold 2 contracts GDXKL for $1.30. I pocketed $250 which yielded 3 pct return on my portfolio with a 17 day window to either get called or continue to own and write more calls.

*If I get called, I’ll be forced to sell at $38 which will reduce my profit down to 2.11% but if expired then I’ll make 3.3% return. Not bad for a 17 day investment.