ETF Covered Calls

Well, I hit my goal (2%) and went beyond that to capture a 3.2% profit in under 30 days. I bought in at $55.99 and sold off at $57.75. Ironically, I found myself cheering for the Dow to drop and for SMH to drop so that I can continue to hold on to my shares and write more calls and make more profit. I found myself cheering when the market recovered so that I could sell my stock and make some more profit.

I find myself cheering for the stock market to go up and the stock market to go down. It’s a win-win for me!

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.

Here are the results for today. SMH popped up so I’m excited I may get called in mid March during options expiry. That would mean an additional $750 in profit and bring my total return for 4 months up to 6.8 pct. Gold, China, Housing, and Semi Conductors all showing signs of life. Be careful out there!

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.

Here are this week’s ETF-Cashinator picks.

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.

What a day! Looks like my DXD trade will hit its 2% target much sooner than I anticipated and I came close to closing my position as I hit 1.89% today. In other news, the ETF-Cashinator revealed the usual suspects as possible investment opportunities for high yield returns over the next 30 to 90 days. Be cautious!

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 had some extra cash lying around and I decided I’d take a chance on a Dow correction and double shorted the Dow by buying 100 shares of  DXD.  If you look at the graph you’ll notice the Dow moving up almost in a straight line and that just doesn’t happen for too long in the market.   This is yet another reason for loving ETFs since they provide a variety of options for your market outlook!

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 cranked out some interesting results.   XSD and FXI lead the high yield returns for March in/near the money calls but FXI has been teetering lately.  XSD is a counterpart to SMH and is better diversified amongst more companies.  SMH is top heavy with Intel, Texas Instruments and Applied Materials which is why I really liked it.  Intel has gotten beat up over and over again the past couple of years and hopefully they’ll have a better year this year.

Here are 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 sold 10 contracts for March 07 $35 Calls on SMH (SMHCG) for $0.75 this morning. This brought in another $750 in addition to the $850 brought in on December 06. So far my return from SMH since December 06 has been $850+$750 = $1600. This equates to 4.6% return from December 4 thru February 2. If called in March, I’ll earn an additional $750 (2.2%) to bring my total return from Dec 06 thru March 07 to 6.9 pct. Not bad first quarter results! If I don’t get called, I’ll look at May and August Calls.
Later this evening, I’ll power up the ETF-Cashinator to see what other opportunities are abound.

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.