ETF Covered Calls

This is the last one for 2006 so enjoy! China (FXI) & Gold Miners (GDX) continue to be red hot be careful you don’t get burned. If SMH calls drop any more, I’m buying them back and selling February Calls!

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.

The ETF-Cashinator is running daily now and I’m treating everyone to a sneak peak of January, February and March 07 calls.  FXI is on fire and that worries me a bit.  GDX is also doing well.

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.

Happy Holidays & Merry Christmas,

The ETF-Cashinator™ has been powered up and like a Christmas Grinch it didn’t reveal any opportunities above 3% for January 07 but February showed opportunities from 4% to 8% in GDX, XHB, IWO, XLE, and FXI.   GDX looks really exciting!

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’ve powered up the ETF-Cashinator™ to see what profit possibilities are out there. I’m mighty tempted to buy XHB (Homebuilders ETF) and sell January $37 Calls but the whole housing sector continues to sour so I’m not comfortable getting in. XHB, GDX, XLE, FXI, IWO are hot for February in/at the money calls returning between 4 to 6 percent.

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 am in the process of attempting to fully automate the ETF-Cashinator™ report to eventually turn it into a subscription service and after employing the ETF Covered Call strategy for almost a year, I’ve tweaked the report a bit with some new parameters.

The ETF selection criteria is pretty much the same:

• ETFs that trade options = true
• ETFs that have average volume > 100,000 shares daily
• ETFs with current price < $100/share (exception for FXI and perhaps others later on)

The new report will have the following parameter by default

• ETFs with Option/Call yield >= 3%
• ETFs with Option/Call yield >= 4% will now be highlighted green

All other ETFs will no longer be listed on the report published here but the raw data and access to the full report which will include all options for the full year will be made available on the subscription site. Click image below to see the new free “Options Friday” report that will be generated each Friday.

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 Friday December Expiry! Time to start looking forward into the new year so I powered up the ETF-Cashinator™ to see what lay ahead. XHB, GDX are yielding between 3% to 4.8% for January 07 buy-write trades near or in the money while February is yielding between 3.7% to 5.6% for SMH, HHH, FXI, and IWO for February 07 buy-write trades.

Click on image to see the results.

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.

Two more days till December Expiry.  The ETF-Cashinator™ has revealed the following High Yield ETF Covered Calls for January 07.  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.

I’ve run the ETF-Cashinator™ today on December 8, 2006 to look for opportunities in December and January. With just one week till December expiry on December 15th, the good deals seem to be gone. January shows some promising potential returns as XHB, HHH, and GDX yielding between 3% to 6.6% on buy-write trades.

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 finally liquidated my position in EXPE reducing my profits to a mere 1 pct but I’ve made up for some of that buy purchasing 1000 shares of SMH at $34.25 and selling 10 contracts for January 07 $35 Calls for $0.85. I raked in 2.5% ($832) profit and if I get called at $35, I’ll earn a total of 4.7% ($1582) return for a 42 day investment!

Later this evening, I’ll power up the ETF-Cashinator™ and publish the results.

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’ve run the ETF-Cashinator™ today on December 1, 2006 to look for opportunities in December and January. With just two weeks till December expiry on December 15th, GDX leads the pack with 2.5% to 3.89% possible returns on Buy-write trades.

The January Expiry Calls are a little more interesting with HHH, GDX, PBW all yielding between 3% to 6.8% returns for about 46 days till January Expiry!

Be careful! The Federal Reserve will be meeting on December 12th to determine Interest Rate Policy. IF the Fed decides to raise rates it may send gold into a sell off and you may end up having to hold GDX a while to recover but it could also be an opportunity to write future calls. Please keep this in mind!

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.