ETF Covered Calls » Power Account Trades

Trade- Buy/Write FAZ

Investor Host — Fri, 02 Dec 2011 04:01:57 +0000

With this faux rally, I couldn’t resist to get back in and load up on FAZ shares again performing a buy-right, in-the-money at the $42 strike for December 2011. I picked up 400 shares at 42 and sold the 42 strikes for 3.35 to rake in about $1500 in about 16 days! We’ll see what happens next.

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Trade – Buy/Write OIH $153 / Aug $153 Strike

Investor Host — Tue, 19 Jul 2011 00:03:06 +0000

Sorry for the absence but I’ve been on holiday and on business travel. In the mean time I have been doing a little training. I purchased GDX at $55 and got called out at $55 for July and made $2.06 per contract on the call options: $205. Today, I bought 100 shares of OIH at $153 and sold the August 2011 $153 strikes for $5.40 to rake in $540.00. Small trade but cash keeps rolling in….

Lastly, I sold my SWN holdings for a cool $400 in profit plus the previous cash in call options.

Trade – Sell 4 SSO January 21 2012 $65 Calls

Investor Host — Fri, 18 Feb 2011 03:16:03 +0000

For those of you who have read this blog for a while, you know that I’ve been down with SSO (leveraged S&P index ETF) for a while ever since the big market crash in 2008. Believe it or not, most of the leveraged ETFs are close to recovering where I bought them. As such I sold 4 contracts (own 400 shares of SSO @ $65) for January 21 2012 $65 strike for $1.65. This will return about 2.5% for the remainder of the year. Not much to brag about however it STILL beats the rate of return on any bank CD. If SSO holds at $65 then I’ll be called out and back in cash for this ETF which means I’ll get back 26k to reinvest.

As a side note, I also sold UNG calls that expire tomorrow and it looks like UNG is below $6 so I’ll be keeping the shares and look to sell more options in the future.

Trades

Investor Host — Wed, 22 Dec 2010 04:37:28 +0000

I did a couple of trades early today and just now have the time to blog about it. I bought 100 shares of FAZ at $9.93 and sold 1 January $10 contract for a cool $0.55 to rake in a whopping $54 or 4.2% return in a month! I also kept my UNG shares from my previous ETF covered call so I sold 10 contracts for February $10 strikes for a cool $0.27 to rake in about $250. So overall I raked in about $300 in one day. Nothing much to write about except some cash is better than no cash in this market.

By the way, my FCG shares were assigned at $18 so I got about $9k back in cash.

Trade – Buy/Write UNG/Dec 18 2010 $6 Strike

Investor Host — Tue, 23 Nov 2010 04:34:29 +0000

I purchases 1000 shares of UNG today at $6 and immediately sold the December 18 $6 strikes for about $0.29 to rake in about $280. It wasn’t a big trade and more of an experiment to see where UNG might flow this winter. Ultimately, I like natural gas and we’re at 52 week lows on UNG so it made sense. All other ETFs that I like to write covered calls on are near 52 week highs and that doesn’t bode well with PIIGS falling apart at the moment.

We’ll see what happens in a few weeks!

Trade – Sell 5 OIH Sep $103 Calls

Investor Host — 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.

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

Investor Host — 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

Investor Host — 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

Investor Host — 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

Investor Host — 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.