ETF Covered Calls » Power Account Trades

Trade – Sell 5 OIH Sep $103 Calls

RichSlick — Thu, 02 Sep 2010 00:35:54 +0000

So OIH had a hard rally today and I took advantage of this opportunity to sell 5 contracts for September $103 calls at $2.40 to rake in about $1200 in cash. I’m earning about 2% with 17 days left in September expiry. I suspect OIH will go down over the next few weeks and I’m expecting my calls to expire worthless but if I get assigned, I’ll be out of the market and sitting in cash until the right opportunity comes.

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Trade – Buy/Write OIH / August 18th $105 Calls

RichSlick — Wed, 14 Jul 2010 23:40:18 +0000

I’ve been on holiday and traveling for the past couple of weeks and a day ago I went ahead and bought 500 shares of OIH at $103 and sold August 18th $105 calls for a cool $4.00 to rake in about $2,000. This is a 4% return in about a 30 day window and if OIH drops below the strike on expiry, I’ll keep it. If it goes up than I’m home free. I’m expecting a rally on OIH once the Gulf of Mexico mess is cleared up. It’s a bit of a gamble but it may pay off.

Trade – Sell DEC 18 2010 $18 FCG

RichSlick — Wed, 16 Jun 2010 13:42:19 +0000

I sold five contracts on FCG for Dec 18 2010 expiry at $18 strike for a cool $1.50 to rake in $735 or 8.33% in about 6 months. Sure beats interest rates at any bank.

Trade – Buy To Close FCG JUN 19 CALL $18.0

RichSlick — Tue, 01 Jun 2010 17:40:43 +0000

I closed out my FCG calls at $0.15 which is a nice profit since I sold them at $1.58 back on Feb 17th. I anticipate a slight bump up in the price of natural gas and if we get a hurricane blow through the gulf it will definitely pop and I’ll sell Dec 10 $18 calls hopefully for a nice profit.

Trade – Buy/Write SWN/Sep 18 2010 $45

RichSlick — Thu, 18 Feb 2010 23:50:54 +0000

Call it greed or call it savvy investing, I just couldn’t help myself and bought 200 shares of SWN at about $45.00 and sold September $45 strikes for $5.54. That’s not a typo I sold the calls for $5.54 to rake in $1,100 and September is only 7 months away. I normally don’t ever do covered calls on stocks but I made an exception this one time because of several factors:

1. There is a high probability that these natural gas heavy companies will be picked up by a major.

2. The premium here is a bit ridiculous at 12% for just 7 months away.

3. I believe we are possibly getting to the bottom of this recession and the climb back up might start this year.

4. If the recession is coming to an end, then energy demand will rocket and I’m trying to capitalize on that now!

We’ll see how this pans out in a few months. BTW, if SWN tanks, I will buy back the calls cheap and hold for the long term.

Trade – Sell 4 March $120 2010 on OIH

RichSlick — Wed, 17 Feb 2010 19:23:20 +0000

I just sold four contracts on OIH for $5.10 to rake in about $2000 in cold hard cash. This will amount to a 4.26% return in under 31 days if assigned using $119.52 as my cost basis. Note: I’ve already raked in additional cash on this puppy in previous transactions. I actually anticipate OIH dropping in March below $120 so I can buy back my calls cheap and sell into the future (April, July, January 2011). My anticipation on drop is based on winter going away thus lowering demand for heating oil and natural gas. Natural gas prices have been in the gutter lately and that gutter is about to get nastier. Note: Long term natural gas and energy prices will spike up and have been priced into markets already so please don’t send me troll posts asking why I am both shorting energy and long energy – it’s complicated!

Trade – Buy/Write FCG/June $18 2010

RichSlick — Wed, 17 Feb 2010 19:16:25 +0000

With natural gas prices continuing to be depressed and likely to go down a bit more I decided to buy into some natural gas producers long and sell short using FCG so I purchased 500 shares slightly below $18 and sold the June $18 strikes (2010) for $1.58 to rake in about $800 or (8.8% return) in less than 4 months. If we have an economic recovery and energy prices climb up I’ll likely be called and sell my shares, if the economy plunges into the abyss then I’ll be happy holding FCG for the long haul….I gotta make me some money in this market!

Trade – Buy To Close OIH Feb 20 2010 120.0 Call @ $1.39

RichSlick — Sat, 06 Feb 2010 00:33:27 +0000

Back in December I sold 4 OIHBD (February $120 strikes) for $5.67 and today I closed that position at $1.39 to keep about $4.28 in profits. If you keep an eye on OIH, it bounces up and down like a basketball and I missed an opportunity a few weeks ago to close my position when OIH dipped to $116. I didn’t want to miss this opportunity so I bought back and hope that OIH goes above $120 again over the next couple of weeks. Energy prices are very volatile so I think it’s a prudent move.

Trade – Buy/Write OIH/OIHBD

RichSlick — Tue, 22 Dec 2009 00:01:21 +0000

Earlier today I purchased 400 shares of OIH at $119.50 and sold 4 February $120 strikes at $5.67. If called I’ll make about $2,500 in total and if not, it’ll be about $2268 in profit and I’ll hold the shares until the next good opportunity. I debated with myself on this trade since I like buying OIH under $110 but with the call premium so juicy I just had to take the plunge. As always now, I’m maintaining a 50k reserve to buy on the dips if OIH plunges below $100.

Trade – Sell OIH

RichSlick — Wed, 02 Dec 2009 01:54:35 +0000

I sold off my 400 shares of OIH today at about $120 so I’m back in cash mostly in my Power Account. I can’t explain it but I got a bit spooked with some international news and I’ve just heard some worse news so I’m sitting in cash. Watch out….