ETF Covered Calls

There are three years of history on this blog to look back to get a small historical perspective.   I’m going to link to the equivalent weeks for November 2006 and November 2007 so you can understand what I’m talking about when I say there is way too much volatility.   If you click on the links, you’ll see that in November 2006 there were about a dozen ETFs which had high yielding call options > 3% over the next few MONTHS (not week)!   If you look at November 2007, there were two to three dozen ETFs with high yielding call options > 3% over the next MONTH!

Now that you have that context, take a look at what the ETF-Cashinator kicked out for the next few DAYS (Not weeks, Not months):

There are about twelve dozen ETFs with high yielding covered call options for the next 5 DAYS!    In a “normal” stock market we would need to be looking at December or January to get some decent premiums on call options but because of the crazy volatility, we can look at the next five days and get great deals.    Next week will be another crazy week and unfortunately, I see a pattern of complacency.  People buy when the Dow hits 8000 or slightly below then sell when it rallies toward 8900 and above.   It’s this kind of pattern and complacency that will lead to a huge fall off when the market doesn’t rally as expected and we’ll be down to the next leg down (Dow 7000 or 6000).      Be careful how you invest and make sure your strategy meets your goals.    Good luck.

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.

Two weeks left till November expiry and the ETF-Cashinator still shows a great deal of possible volatility.  There is major hedge funds redemptions on the 15th of November so we’ll see what the week brings;  I’m looking for opportunities to sell DUG or OIH calls for November expiry at a profitable price

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.

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.

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.

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

Next Friday is October expiry and the ETF-Cashinator still shows a great deal of volatility but with the market dropping so much, we’re bound to have a rally next week.   My best guess is a rally on Thursday but we’ll see how things pan out.    As always, choose your investment wisely…..

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 fact that the ETF-Cashinator kicked out every single ETF as an opportunity is a simple indication that this market is going to be wild next week. There’s no question about it, I’ve been doing this for years and whenever every ETF has SO MANY high yield calls within such a short period of time before expiry, it’s an indication of a sporadic, bipolar market. I’m holding DUG, XHB, SSO & DDM. That’s it. I’ll hold the line 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.

© ETFCoveredCalls.com

Just heard on the late night news that Bush is planning on speaking tomorrow morning at 0700 and that makes me think that the stock market will be closed tomorrow.     We’ll see what happens, I don’t see any point of him speaking tomorrow if Congress isn’t planning on convening until Thursday.

As a result of the news, I’m running and posting a special ETF-Cashinator tonight.   Choose your poison carefully, you might find riches beyond your dreams somewhere in here but be very careful

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

With 21 days till October expiry, the market continues to be erratic and that means every ETF has high yielding covered call opportunities. There are five pages of ETF’s listed and like last week, you need to choose your poison carefully. I’m holding DUG, XHB, DDM, & SSO currently along with a large cash position.

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

Over the past few months, the volatility in the markets has created an interesting opportunity and I’ve been considering adjusting my ETF Covered Call strategy slightly.   As a general rule, I usually hold the options through options expiry and wait to be assigned or let the options expire worthless but because the market will violently turn up then down or vice versa, it has become prudent to buy back the options when the option profit reaches above 80% and either resell them again when the market shifts or sell next month’s options at the same or better strike price.

I’ll try to follow this rule moving forward with my existing holdings and will continue to sit in cash until this rudderless Titanic steers a new course.

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