ETF Covered Calls

Only 21 more days till September Expiry!  I’ve been eying UYG and salivating at the chance of some great easy profits but I wanted to wait until September to pull the trigger.  We’ll see what happens next week.

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.

I’m guessing it is going to be a crazy few weeks till options expiry but here are this weeks ETF-Cashinator picks….

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.

My 5 SDSHL (August $64 expiry) contracts expired worthless so it’s time to sell September $64 contracts for $3.00. I sold 5 SDSIL contracts and raked in $1,485.00 today in cold hard cash.

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.

Here’s an update on my current positions.  I hope I captured all the cash flow right below.

Arbitrage Account:

• Own 800 XHB @ average cost of $21.26 (400 @ $22.72, 400 @ $19.80) : XHB closed at $19.26 (position at -$1,600) : Cash Flow $2,058
• Own 400 DDM at cost of $74.30 : DDM closed at $63.74 (position at -$4,224) : Cash Flow $685.00

Mini Account:

• Own 200 DDM at $77.80 : DDM closed at $63.74 (position at -$2,812) : Cash Flow $2,502.00

Power Account:

• Own 500 DDM at $71.95 : DDM closed at $63.74 (position at -$4,105) : Cash Flow $1,100.00
• Own 200 QID at $46.75 : QID closed at $38.63 (position at -$1,624): Cash Flow $926.00
• Own 400 SSO at $65.65 : SSO closed at $63.00 (position at -$1,060) : Cash Flow $1,335.00
• Own 500 SDS at $64.00 : SDS closed at $63.80 (position at -$100) : Cash Flow $461.00

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 SDS closed slightly under $64 so I won’t likely be called and hold on to the shares and premium . September $64 calls are selling for about $3.00 so that’ll mean another $1500 tumbling in on Monday when I sell 5 contracts.     Since it’s options expiry, I’ll update my positions on Sunday.   Here are this week’s ETF-Cashinator picks for September 2008, the large number of opportunities means the market will be extremely volatile over the next few weeks!
              

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.

I’m a sucker for easy money, let’s hope this bet pays off.  I bought 500 shares of SDS at $64 and sold at-the-money call $64 strike SDSHL (August expiry) for $0.95.   Raked in $461 (1% return) in less than 4 days till expiry.  If  this turns out to be a dog, the Sept. at-the-money calls are selling for $3.30 (5%) premium right now so it may keep gushing out cash.

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 4 more contracts on XHB.  Sold December $23 strikes for $1.50 to rake in about $600.   This represents 7% return in 131 days till December expiry.  I executed this trade because this now brings up my total return on XHB to 24% as the previous trade brought me up to 18 pct.  My goal is to make at least 2% per month and I’ve now achieved this goal.   I’ll just hold on to XHB till December.  If XHB drops, I’ll buy back the calls cheap, if XHB rockets up then I’m happy with 24% return for the year on this ETF.

So far, XHB has netted me 24% return for the year.

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 XHB popped today (finally)!  I had purchased 400 shares back on 5/27/08 for $19.80 so I just sold September $20 strikes for $1.10 to rake in about $432.00.   This represents 6% return in under 40 days.  The XHB “well” had been dry for a while but it looks like its starting to gush out cash again.   I had purchased another 400 shares at $22.72 on April 10th that I’ll still hold on to but I feel confident about it climbing back up over the next couple of months.

So far, XHB has netted me 18% return despite the ETF being down 14.25% and that’s what ETF Covered Calls is all about.

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.

Crazy eights, crazy market. Next week is August expiry and there are still some opportunities out there if you want to venture a bet at the wall street casino. Here are this week’s ETF-Cashinator picks with a sneak preview into September 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.

I sold 4 contracts for September 08 $66 strikes for $1.60 to rake in about $630 (2%) in less than 45 days till expiry.   I placed the order in and didn’t think it would take but someone bought.    If the market tanks again, I’ll buy back these calls cheap, like $0.25 and if I get assigned then I will have earned a good return these past few months and be called out and revert to cash.   I look at it as a win-win in either case.

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.