ETF Covered Calls

 Another interesting week.  The ETF-Cashinator kicked out 4 pages of opportunities.

ETF Covered Calls 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.

Sold 2 QIDHU contracts @ $3.10 on existing 200 shares of QID I own.   Raked in $600 (7% in under 25 days!) and  that’s phenomenal.    Hopefully, I’ll be called so I can dump the 200 shares of QID during August expiry.    So far, this ETF has yielded me 11% over all from April 08 to August 08.

ETF Covered Calls 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.

Arbitrage Account:

• Own 800 XHB @ average cost of $21.26 (400 @ $22.72, 400 @ $19.80) : XHB closed at $17.01 (position at -$3,400)
• Own 400 DDM at cost of $74.30 : DDM closed at $62.35 (position at -$4,780)

Mini Account:

• Own 200 DDM at $77.80 : DDM closed at $62.35 (position at -$3,090)

Power Account:

• Own 500 DDM at $71.95 : DDM closed at $62.35 (position at -$4,800)
• Own 200 QID at $46.75 : QID closed at $45.25 (position at -$300)
• Own 200 SSO at $66.30 : SSO closed at $59.37 (position at -$1,386)
• Sold 2 SSOGO for $2.00, these options expired worthless
• Sold 2 SSOSM for $1.65, these naked puts will be assigned and I’ve been assigned 200 SSO at $65.00
• Sold 2 SUCTC for $2.80, these naked puts will expire/assign during August expiry (August $55.00 Strikes)

So the potential for profits here are in SSO, DDM and QID for August (or later) expiry. SSO August $65 calls are trading for $0.60 or about 1% return in under 28 days. DDM October $72 strikes are selling for $1.40 or about 2% return in 3 months. QID August $47 strikes are trading at $2.20 or 4.5% in under 30 days. Profit opportunities are not quite ideal except on QID so I’ll hold until better opportunities surface.

ETF Covered Calls 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.

Dead cat bounce or recovery?  Who the heck knows….this market is crazy but good thing the ETF-Cashinator fishes out the sea of profits out there….. Here are this weeks picks.   Note:  The ETF-Cashinator kicked out 5 pages of opportunities over 3% and 4 pages over Naked Puts and historically, when this happens you can expect a great deal of volatility the days/weeks after.   Hang on to your hats!

Note:  On Sunday, I’ll post an update on my account positions as of July expiry.

ETF Covered Calls 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.

Note: This is a Naked Put Trade!

Sold 2 SUCTC (August $55 Puts) naked puts for $2.80 to rake in about $550 - roughly a 5% return in  30 days. I previously sold naked puts on SSO for July $65 strikes a few weeks ago. The plan here is to double dollar cost average my way down without putting up cash to do so. Here’s a little diagram of what I expect to happen:

• Bought 200 SSO @ $66.30
• Sold 2 SSOGO ($67 strikes July Calls) for $2.00
• Sold 2 SSOSM ($65 July Puts) for $1.65
• Sold 2 SUCTC ($55 August Puts) for $2.80

So what’s likely to happen. If the market stays where it’s at through July expiry then my SSOGO calls will expire worthless - good. My SSOSM July $65 puts will be assigned - good; I’ll own 400 SSO at $65 which I will sell Sep 08, $67 Calls for $1.25 - good; My SUCTC options would expire worthless and I keep the premium - good. If the market raises from here then all my shares and options will be worth so much more!

If the market continues to drop then I’ll start the cycle all over again at a lower dollar cost averaged point. While everyone is whining about the market, I’ve raked in over $1200 in cash in a few weeks. Not bad at all.

ETF Covered Calls 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.

Another bloody week in the market and I just read that IndyMac (a very large bank) has just failed.    The financial market is drowning in debt and uncertainty.   Good thing the ETF-Cashinator is still cranking out prospects……

ETF Covered Calls 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.

Looks like ETF Naked Puts are drying up so I’m not sure if this means we’ve hit a bottom in the market slaughter or if it’s something more ominous.   In any event, here are this weeks ETF-Cashinator picks….