It’s options expiry and it looks like all my calls in my power account expired worthless which means they’ll be opportunities (hopefully) for more profits in the future. I banked the full $2900 on the calls I sold about a month ago on EEB and DXD. I’m not concerned about DXD being down because all it takes is a major event to send the Dow spiraling down again and I’m sure it’s going to happen before summer hits.
In my mini account I did get called out at $72 as DDM closed at $72.57 and I had originally bought in at $72.30 so I’m taking a $0.30 loss from the original $3.60 I made so I’m walking away with $3.30 x 200 in profits!
It’s time to look at April and here’s what the ETF-Cashinator has selected.
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From the ETFs listed, what algorithm will you use to decide which to short calls? Do you just automatically pick those with the largest “yield”?
The program scans all ETFs that meet a certain criteria: avg. vol > 100k traded daily, options, etc.
From this list, the program scans and sorts the highest yielding options 30, 60, 90, 120, etc days out.
After examining the list I begin my research into the highest yielding ETF to determine which one I would like to invest in. I factor in currency movements, economic data, financial news, world wide interest rates, money flows, and a few other factors before I make a trade.
Picking those with the largest yield will likely cause an investor problems.
I also look at the Puts to determine where the heaving “betting” is going to help determine which ETFs might fall or are heavily “insured” by investors.