ETF Covered Calls

This is a special spooktacular ETF-Cashinator report to celebrate the Fed’s double scary rate cuts.   With no Fed meeting until December 11th, the sky’s the limit baby!

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.

Interesting week, the volatility is making etf covered calls returns phenomenal. I’m currently invested in PGJ and EEB and with only 21 days till options expiry, anything can happen!

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 performance.

Well, I sold off UNG today at $39.75 to rake in another ~ $150 in profits in my mini account earlier today.  I got tied up so I didn’t post this sooner.   I’m 100% cash in my mini-account for now.  We’ll see what the ETF-Cashinator shows tomorrow.

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 bought 1100 shares of XXX at $35 and sold the November at-the-money calls for $2.30 so I raked in $2530 today in premiums. Hopefully, I’ll get called as there is no upside because the calls are at-the-money.  This represents a 6.6% return in under 30 days! As before, because these trades are made with arbitrage funds, trading symbols are XXX’d out.

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.

Too many buying opportunities out there today. I bought 1000 shares of EEB at $50.70 today and sold November $51 Calls (EEBKY) for $2.15. Raked in $2100 in premiums today in my power funds account. If I get called, I’ll make an additional $200, if I don’t then I’ll look to sell December calls. This represents 4.25% return in under 30 days!

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.

The ETF-Cashinator hasn’t let me down yet in 18 months of using it so we’ll see how we navigate these treacherous market waters over the next 30 days. I’ll probably sit in cash until after the Fed meeting then pounce on the ETF-Cashinator picks.

My arbitrage account ETF got called/assigned and I’ll make an extra $120 on top of the $1200 I made earlier when selling the 9 contracts. My Mini-Fund account ETF options surprisingly didn’t get called because UNG fell below $40 although it closed higher than I bought it ($39.25) at $39.75 so it’ll be profitable if I decide to sell on Monday. I might sell more calls for November or January. Either way, I’ve banked the $650 in profits.
Here are the picks as of close of business 10/12/2007.

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.

No surprises, I was short because I felt this was coming. Have you been keeping track of the banking disasters?

• Citigroup $2.24 billion charge for bad debt.
• Bank of America $1.3 billion fall in earnings – bad investments.
• Washington Mutual $2.9 billion in bad home loans.
• Wachovia $1.3 billion in losses and write-downs.

By my count that’s $7.74 BILLION in losses for these banks and we’re at the BEGINNING of the sub-prime mess. Scary isn’t it? It looks like all my ETFCoveredCall transactions will be assigned and I’ll be sitting in 100% cash with my profits. I need this little breather. Fed meets at the end of October. I might sit on cash till then ;). I’ll update my transactions after market close and I’ll post ETF-Cashinator results too!

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.

Liquidated my SDS position at $50.50.  Made a small profit but a profit nonetheless.  Warren Buffets two rules of investment are gold to me:

1. Don’t Lose Money

2. See Rule #1

I’ve been researching some major issues in the currency markets and massive outflows from Japan and China. It’s not looking good.  I’m anticipating a large spike in Treasury yields and perhaps the market tanking further unless of course the Fed steps in with another 50 basis point cut which will rattle & roil or rally the markets.  Not good either way; best thing to do is sit on my profits in cash.  Good luck.

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 sold off my DXD positions for a $750 profit (1.2% return in 15 days) today. Still holding SDS short though. Will sit on SDS until I make a profit or after the next Fed meeting, whichever comes first

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’m still short holding on to SDS and DXD. Next week is options expiry and it’s do or die time. Looks like my UNG position might expire worthless and my arbitrage might get assigned.  Profits either way.  In the meantime, here are the ETF-Cashinator™ picks for 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.