ETF Covered Calls

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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ETF Covered Calls 08-27-2010

RichSlick — Sat, 28 Aug 2010 00:13:17 +0000

I’m waiting for the investigation to begin into these leveraged ETF’s. So much volume so much cash -where is all this money coming from? Who’s behind these trades? In any event the ETF-Cashinator report doesn’t look good. It’s garbage again and I’m holding OIH and cash as my investments at the moment. I expect OIH to pop up above $103 soon and I’ll sell September in the money calls as soon as that happens.

Here’s the Google Link.

ETF Covered Calls 08-20-2010

RichSlick — Fri, 20 Aug 2010 21:07:21 +0000

It’s options expiry and it looks like OIH closed well below $105 which means I’ll keep the $2k in premiums I sold and I’ll retain ownership of the ETF. So it’s time to crank up the ETF-Cashinator and find out what’s in store for the market. By the way, OIH calls for January 2011 at the $105 strike look fairly profitable and if OIH continues to drop then it may be time to buy a bit more… According to the ETF-Cashinator, we’re entering a scary period again of high xolatility and it’s not a surprise given the ups and downs of the market. My only potential trade on Monday is selling January 2011 $105 strikes for $6.00.

Here’s the GOOGLE Link.

ETF Covered Calls 08-06-2010

RichSlick — Sat, 07 Aug 2010 14:09:28 +0000

The stock market is turning into some weird repository of gamblers and crazy investments. If we were living in 2007, a world relatively free from leveraged ETF’s and other crap, I’d say the market was finally stabilizing and returning to normal. When I run the ETF Cashinator now, all I see is crazy speculation and large inflows/outflows of leveraged ETF’s. I don’t know what to make of it except perhaps to think that there is a fundamental movement OUT of normal equities and into exotic instruments. I’m only investing in OIH at the moment and in cash the rest of the time. Looks like my play on the Gulf recovery was a good move for now.

Here’s the Google Link to the ETF Cashinator Report. It is full of garbage.

ETF Covered Calls 07-31-2010

RichSlick — Sat, 31 Jul 2010 23:06:03 +0000

I’ve been on the road quite considerably so I haven’t been cranking the ETF-Cashinator. I’m also a bit detached from the market with a key position in OIH. With only 20 more days till August expiry, things are looking good on that trade.

Here’s the Google Link.

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.

ETF Covered Calls 07-02-2010

RichSlick — Fri, 02 Jul 2010 22:48:41 +0000

The ETF-Cashinator is suggesting we’re headed into a great deal of xolatility over the next 30 to 60 days and possibly beyond. With only 14 days till options expiry there are plenty of “normal” ETFs displaying high yield on covered calls thus indicating high degree of speculation. I’m still largely in cash so Watch out.

Here’s the google link.

ETF Covered Calls 6-25-2010

RichSlick — Fri, 25 Jun 2010 23:30:11 +0000

I’m beginning a new narrative on what is happening with this market. The leveraged ETF’s seem to be sucking all the money from other ETFs thus lowering the covered call potential on “normal” non-leveraged ETFs. I am in the process or recreating the ETF-Cashinator report to strip out the leveraged ETFs but it’s becoming apparent that there aren’t going to be too many opportunities. I will investigate this further and report in the future but in the meantime, here’s this week’s report.

Here’s the Google Link.

ETF Covered Calls 06-18-2010

RichSlick — Fri, 18 Jun 2010 22:14:44 +0000

I’m going to be removing the 3x leveraged ETF’s from the ETF-Cashinator. There is simply too much clutter in the report and these ETFs are too volatile to successfully write ETF Covered Calls with any way. Today is June expiry and aside from my recent trade on FCG, I’m still sitting mostly in cash. I will await to see what happens next week before I make a move.

Here’s the Google link.

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.