High Yield ETF Covered Calls as of June 8th 2007

I’m giddy with excitement.  Next Friday is Options Expiry!  Will I get to sell July 07 Calls and make another $1000?  Only time can tell.  In other news, here are this weeks ETF Covered Calls highlights.

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6 Responses to High Yield ETF Covered Calls as of June 8th 2007

  1. Chris says:

    What will you get to sell on for july 07? I’m thinking GDX but not sure…currently I’m holding 400 long gdx at avg of 39.34…got on the short side thursday on USO and rode it down 1.5 pts…then doubled down on my gdx after covering, looks to be a good move so far :) Looking to write for july but I have a feeling gdx gonna bounce up nicely this coming week in which case I’ll probably then write some atm calls on it for july and probably watcha pull back to buy back lower ;)

  2. RichSlick says:

    Well the big gotcha is the federal reserve meeting on June 27/28. I’m holding 300 GDX right now at $39 and sold $39 strikes for June. My plan was to get called and have my shares unloaded from me since I don’t like holding GDX during FOMC meetings but we’ll see.

    Inflation is high which is good for gold I just suspect that IF the Fed raises rates in June, gold will take a small hit then possibly recover.

    I’m really focused on energy though. OIH dropped down to 166 after selling 170 calls (which expire next week) so I’ll be in a position to sell July 170 calls. With hurricanes possibly brewing off the coast of Africa, it’s looking really good right now. Only time will tell.

  3. Chris says:

    Yea, I bought back my 2 original july 41 calls on friday when I doubled down so I can then sell all shares if need be if I don’t want to write calls…I’m not approved for naked calls so even if I have only 2 calls written on 400 shares, I can’t sell my free 200 shares so I bought back the options near the low and am free to sell my shares for the time being…looking to get a quick pop this week towards 40 and sell off 200 shares then write atm july 40 or 41 calls on my core 200 shares…but we’ll see how it all plays out, inflation data due out tomorrow so if it’s high inflation might get a spike but if the fed is gonna tighten it’ll take a hit..This is why the market is so interesting and as a recent college graduate best to learn early on :)

  4. Chris says:

    Hey Rich,

    How do you stay so disciplined and not look to buy back calls and just let them expire? I’m too ancy to do that but I think I’m going to have to start doing it so I don’t have to pay attention to the market so closely..I’ve become a market junky hehe..keep up the good work, I use your site every week to see if there’s something better I should be in!

  5. RichSlick says:

    Chris,

    I have been tempted to buy back OIH numerous times this week alone! It went from $170 to $166 and the calls I sold went from $5 to $1! If I had bought them back, I could have sold them again for $4!

    Why didn’t I do it? Because my expected return calculations are already factored in. My annualized return goal is 18% to 24%. If I can “guarantee” myself 1.5% to 3% every 30 to 45 days via ETF Covered calls, the annual number translates to 18% to 36% return. I am happy with that, I don’t worry about market ups and downs as I keep raking in the cash either way.

    It’s all about setting your targets and goals, without direction a ship can wonder in the ocean aimlessly forever!

  6. Chris says:

    Hey Rich,

    Thanks for the advice, I’m looking to go towards that now…just let the options expire, if they’re called I get to start over again…my margin shares I write ATM as a better premium and better chance of getting called…then my core 200 I like to write 1 strike otm…I did get caught up trading the last 2 months on USO & VLO which worked out great! But looking to get more back to consistency, I had the opportunity at the time and took advantage of it but now looking to get back to normal with what I had been doing the last 5 months..

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