ETF Covered Calls

For every step forward, we take two steps back.  The ETF-Cashinator is a bit disappointing right now as it shows the volatility blowing through the roof again even for May which was previously showing as stable.  June and July options don’t look too much better so I’m guessing we’re headed back on the roller coaster ride from here.

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.

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March expiry is here and, no surprise, the market turned down on the last day. It’s time to look ahead at April and May and I’m still seeing things stabilize in May (somewhat) but April looks horrible. I’m not sure what to make of the May “calm” as the ETF-Cashinator sees it but it’s there; the wild number of high premium options settles down a bit in May and jumps a bit in June & July but shows signs of sanity from what I’ve been seeing the past few months. The put premiums seemed to have settled down as well. I could be misreading it and perhaps the bottom will fall out in May but right now it looks like April will be bouncing high and low and perhaps a stable reprieve in May and beyond?

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

I just cranked up the ETF-Cashinator and took a look. First, March expiry is next week and the puts look interesting as bets are anticipated on inverse ETFs. Second, the April 09 options look HORRIBLE; there are many large bets that the market will fall as there is heavy betting on inverse ETFs. The volatility might be deadly from now thru April expiry BUT the good news is that May looks fairly stable. Dare I say, “normal” options for May 09? Yes, I dare say it. I’m not sure what it means entirely other than perhaps we’ve hit bottom or will do so some point between now and April expiry and then stay flat or climb slowly. Of course, anything can happen between now and then but this is the first time in a long while that I’ve been ENCOURAGED. If the government can stop from announcing any more meddling in the market, I may take some cash and put it back in play……

Here are the ETF-Cashinator picks for March 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.

© ETFCoveredCalls.com

Still a great deal of volatility but we may be nearing exhaustion here.   The ETF-Cashinator cranked out the usual superfluous ETF Covered Calls with high premiums.   Just be careful out there.   Here are the ETF-Cashinator results:

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

The Dow dropped nearly 300 points and broke below 7000 so I cranked up the ETF-Cashinator for some clues about the markets future.  I was initially happy when I saw that the April calls look like the premium/ratios were returning to more normal levels and was planning to write that we would hit the bottom sometime between now and April but then I looked at the ETF-Putinator and my jaw nearly dropped!   The ETF-Putinator is showing crazy and wild premiums/ratios for every month into the future!    It makes sense that everyone is negatively and massively placing negative bets or buying insurance against further losses.   As a contrarian type investor I actually see this as a positive sign as everyone has piled on to the stern of the ship so it’s time to consider moving toward the bow for some profits.  It is simply concerning that sooo many people have piled to the backside that it may tip the whole thing (market) over once and for all.   Let’s see what happens tomorrow…

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