ETF Covered Calls 02-27-2009

I just cranked up the ETF-Cashinator and it is showing some very disturbing signs.  The call option volume and premiums are down from their stratospheric levels (still high) but the put premiums are through the roof.   To me, this indicates that investors continue to buy insurance or place bets that the market will continue to fall.  This, combined with the reduction in call premiums, doesn’t bode well for the markets overall.    It doesn’t help that Citibank, Bank of America are near/at insolvency and their stock is trading close to zero.  GDP for 4th quarter SHRANK 6.5% isn’t good either!   I continue to sit out the market with my usual positions.  Here’s the ETF-Cashinator report.

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