ETF Covered Calls

July expiry will be here sooner than we expect as next Friday is a holiday and short week. The ETF-Cashinator still shows some level of volatility but it’s tapered off a bit. I’ve been keeping an eye on OIH and it’s back down below $100 so I may not get to cash out after all but what a ride! Most of the ETFs I track have been fairly static and it’s becoming stable and repetitive enough that I am seriously considering getting back in the game from here. I’ll see how July pans out and if it looks good, I might get back in the game in August.

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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I’m going to stick with my hypothesis that something BIG is going to happen in July with the market.   I’m not sure which direction things will turn but I do believe it will be very volatile.  It did occur to me that most states have their fiscal cycle run from July thru June so perhaps the bond market will go haywire.  Here are the 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.

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Talk about a long road to walk….the ETF-Cashinator is showing the same thing as last week: June and August expiry looks “normal” while July looks terrible. I still can’t make it out and since there is only 7 more days before June expiry, we’ll know soon enough what’s up with July. OIH is holding nicely above $110 and I hope it stays up there at least a few more weeks (July expiry)!

Here is the ETF-Cashinator and note how thin June high yield etf covered calls are and that’s the way it should be:

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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I’ve been keeping an eye on the price of oil and everyone is talking about it but I’m guessing it’s going to crash hard at some point.   The price of natural gas has barely budged and other commodities don’t seem to be surging either so I’m left to believe that there is paper demand and games being played with oil futures.   Unfortunately I’m in-the-money with my OIH options but I’m hoping OIH will stay above $110 so I can cash out.     The only caveat is if a major hurricane blows through the Gulf of Mexico between now and July expiry.   In other news, the US Treasury (10 year) market didn’t do too well today as yields spiked.   I think the Fed is double dipping again so we’re in for some pain…

Keep an eye out and be careful out there….

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

What a world we live in….the ETF-Cashinator is reporting something odd.   The June expiry calls/puts look “normal” but July looks highly volatile and August looks “normal” and I’ve never seen this before so I don’t know what to make of it.    In the past if options 60+ days out were out of whack then the subsequent months were out of whack.  If the options 30 and 60 days out were normal then the 90 day options were normal but July options look like pure garbage yet June and August look stable.     The only thing I can make of it are either:

1. The GM bankruptcy ripple effect will mestastasize in July.

2. The great Oil hope (big rally) will mestastasize in July.

3. The US Treasury market mayhem will mestastasize in July.

The scenarios may result in a big rally or a big fall for the markets which is why July looks so volatile, after July we’ll know if the market is headed for a tailspin and collapse in September or if we’re on our way to recovery and Dow 10,000 by end of December 2010.

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