It’s options expiry Friday! Let’s take a quick review. I bought 800 USO at $52 and sold ATM calls for July at $1.70 so I pocketed a cool $1360 in profit (3.2% profit) in less than 33 days. I’ve now been forced to sell my shares at $52 even though USO is trading at $57. Was it a bad move? Not really since USO may drop like a rock next week along with the Dow. I reached my 3% goal for the month and am perfectly content to sit in cash now. It’ll be time to look at another 3% possible return for August (see image).
In my other account, I bought 200 shares of UNG last week and sold at-the-money calls for $0.95 to pocket $175 (2%) in one week! UNG closed at $41.10 so I should get called and sit in cash as well.
What’s up for August? UNG is hot along with FXI, GDX and IWN. With ever increasing volatility, make sure you watch your back.
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