ETF Covered Calls

I’ve been running the ETF-Cashinator every day this week and it’s not pretty.  With 9 days to go before November options expiry, the calls and puts premiums are crazy.   The ETF-Cashinator cranked out almost every ETF as having high call premiums.   It’s going to be a rough nine days from here on out.   The market may rally but I’m expecting it to fall off the cliff.    The only glimmer here is I’m deep in DUG and that has been rallying while the market is dropping.    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.

I’ve been keeping an eye on DUG this week and the option premiums are crazy.  Warning:  This stock has been swinging wildly $8 to $12+ more daily and is highly correlated to the price of oil.   With OPEC meeting later this week it’s anyone’s guess what will happen with this ETF.    When oil goes up, DUG goes DOWN and when oil goes down, DUG goes up.   The in-the-money options are trading at $7 which is a 15% return in under 5 weeks till November expiry.    I’m tempted to purchase 700 shares and sell the calls to rake in $4900 but I’ll wait until OPEC meets or I have more information on where oil is heading.

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.