ETF Covered Calls

November expiry is 21 days away and if you think this week’s rally means it is an uphill climb from here you might want to think again… The ETF-Cashinator kicked out over 10 pages of ETF’s with extreme premiums.  The ETF-Putinator kicked out more than the usual opportunities with very high premiums.   There will be more market volatility in the coming weeks.    I’m guessing the election is going to make some people very happy and some very mad which may not bode well for markets in the short term.  If OIH rallies on Monday, I’ll try to sell calls or sell out of OIH to revert to cash but we’ll see what happens.   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.

I just bought back my DUGKY contracts that I sold a few days ago for $9.00 at $2.00 so I’ll keep a full $7.00 x 600 = $4,200 in profits and be clear of any options obligations.    I didn’t get the full 80% but it was close enough!  I was hoping this would happen as I expect a brief rally next week in the market and then a precipitous plunge but anything can happen.

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 picked up 600 shares of DUG @ $51.80 in my Arbitrage account and sold 6 November $51 contracts @ $9.00 to rake in about $5,400. This will be an 18% return if I’m NOT called and 17% return if I am called. I sold in-the-money because I don’t want to be left holding the bag here but I don’t think oil will rally significantly over the next few weeks. If it does my OIH holdings in my Power Account will make some profits for me hopefully! This is a phenominal premium with about 4 weeks left till options 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.

Another bloody week in the stock market.   The next 8 stock market days will be remembered forever from my perspective but we’ll need to wait and see what happens.   The ETF-Cashinator cranked out a ton of investment ideas and I’m only going to list the top 6 pages.

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 picked up 200 shares of UYG in my mini account for $7.95 and sold 2 contracts for November $8 strikes @ $1.40 to rake in about 18% ($260) today.    I think UYG may drop further but I’m comfortable holding it from here but who knows, maybe all these banks will go bankrupt in the next 30 days…..

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’ve been keeping an eye on DUG this week and the option premiums are crazy.  Warning:  This stock has been swinging wildly $8 to $12+ more daily and is highly correlated to the price of oil.   With OPEC meeting later this week it’s anyone’s guess what will happen with this ETF.    When oil goes up, DUG goes DOWN and when oil goes down, DUG goes up.   The in-the-money options are trading at $7 which is a 15% return in under 5 weeks till November expiry.    I’m tempted to purchase 700 shares and sell the calls to rake in $4900 but I’ll wait until OPEC meets or I have more information on where oil is heading.

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 purchased back my 4 XHB contracts (XXJLW) for $0.15 today for $60 total.   I breached the 90% barrier on gains on the call options so I decided to close out and wait for XHB to rally and resell those contracts (hopefully).   I’m now back in cash (35k) in my arbitrage account and still hold 400 XHB & 400 DDM.   We’ll see how the market turns this 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.

Here’s an update on my current positions.

Arbitrage Account:

• Own 400 XHB @ cost of $22.72 : XHB closed at $14.30 (position at -$3,368.00) : Cash Flow $2,058 Note: I own 400 shares of XHB with 4 contracts for Dec $23 strike option sold.
• Own 400 DDM at cost of $74.30 : DDM closed at $34.80 (position at -$15,800.00) : Options Cash Flow $685.00
• Own 500 DUG at cost of $43.50 : DUG closed at $52.60 (position assigned at $42) : Options Cash flow $3,451.00 Note: Position will close at $42.00 for an anticipated loss of $750.00
• YTD Options Cash Flow: $7,435.00

Mini Account:

• Own 200 DDM at $77.80 : DDM closed at $34.80 (position at -$8,600) : Options Cash Flow $2,502.00
• Bought 100 UYG at $10.08 and sold October $10 call : Assigned at $10.00 to rake in $80.00
• YTD Options Cash Flow $2,315.00

Power Account:

• Own 500 DDM at $71.95 : DDM closed at $34.80 (position at -$18,575) : Options Cash Flow $1,100.00
• Own 400 OIH at $109.17 : OIH closed at $90.00 (position at -$7,688 ) : Options Cash Flow $2,545.00
• Own 400 SSO at $65.65 : SSO closed at $30.80 (position at -$13,940) : Options Cash Flow $1,335.00
• YTD Options Cash Flow: $13,622.50

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.

October options expiry is here. Where do we go from here? Who knows, I’m relieved that my 500 shares of DUG will be a forced sale at $42 and I’ll be in cash again in my arbitrage account. It also looks like my UYG shares in my mini account will be assigned too! My other accounts hold large paper losses in addition to increase in positive cash flow this month. I’ll be updating my positions on Sunday. Here are the results for the ETF-Cashinator this week and it’s a doozy; the market will be volatile on steroids for the foreseeable future based on this report.

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.

© ETFCoveredCalls.com

Sell High, Buy Back Low!   I just bought back my 4 contracts of OIHJV for $0.75 after selling them last Thursday for $6.40.  The net profit is $5.65 x 400 = $2,260.00.   The November $110 strikes are selling for about $5 so I can make another $2,000 or I can sell the January $110 strikes for $8.45 to rake in $3,400.    I’ll give it a few more days before I trade either as the day before options expiry is usually a rally day but we’ll wait and see.

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.

© ETFCoveredCalls.com