ETF Covered Calls

I’ve currently moved from cash to shorting the market and will likely begin trading in my arbitrage account sometime next week. I expect the market to dip over the next week or two and hopefully, my move will be profitable.

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 performance.

I picked up 600 SDS and 700 DXD to short this market.  I’m bullish on a market drop next week but we’ll have to wait and see.  I’ll post ETF-Cashinator results after market closes.

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 performance.

Sorry I didn’t post on Friday but I went out of town and didn’t have access to a computer. I went on a much needed 3 day get away to the middle of nowhere and I didn’t take my computer or wireless card with me. Here is the data from yesturday. It’s a bit stale now but in line with what’s going on in the market. Not much!

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 performance.

I came across some news today that made me do a small trade in my mini-account. I’m still primarily in cash but because my mini-account has such a small amount, I figured this trade would be no big deal. I picked up 300 shares of UNG at about $39.25 and sold the October $40 call for about $2.20 each which means I’ve raked in $660 (5.6%) return in under 30 days. If I get called at $40, then I’ll earn an additional 1.9% return on top of the 5.6% return I’ve booked now. If UNG drops down, I’ll sell December calls (winter is coming and a little bird told me it would be very cold ).

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 performance.

I ran the ETF-Cashinator after todays Fed rate cut decision.   There are the usual opportunities but I’ll wait it out till options expiry.  I expect the market to surge further tomorrow or come back to reality suddenly.   The Fed rate decision really didn’t fix anything in my opinion.   People on the verge of foreclosure will still be foreclosed on; the Fed would need to lower rates down to 1% so people can refinance on ARMs to make things return to pre-bubble days and I don’t see that happening.  I am extremely tempted to pick up DOG or DXD but I’ll wait to either options expiry or End of Quarter.  The big ARM adjustments are suppose to happen in October 07 and March 08.
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 performance.

Only 5 for business days till Options Expiry next week and there’s the big Fed meeting on Tuesday.   I see a lot of people betting on rate cuts and rate increases so there will definitely be a slaughter.  I’m glad it’s finally here, I’ve been on the sidelines for nearly a month but I suspect that it’ll be worth it.   No matter what the Fed does, I see the market whipsawing  this week.

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 performance.

What an amazing week of ups and downs.  I’m still in 100% cash until AFTER the Fed meeting.  It’s been hard to stay on the sidelines because there are some opportunities out there.  I meant to buy FXY on the last dip but didn’t get around to it and it popped $1.5 today!  Oh well, I’m better off in cash anyway.

Here are this weeks picks and for goodness sake, be careful out there.

Note:  I tried using data from Google Finance and just realized that some of the data is off.  I’m beginning to think google finance sucks.  The picks are mostly correct but do your own due diligence!

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 performance.