ETF Covered Calls 12-5-2008

Disappointing.   I had hoped the last run of the ETF-Cashinator would show a stabilizing of the market but the report today shows just as much volatility; actually the volatility increased as the time period declined from three weeks last week to two weeks till December expiry.  This isn’t good despite today’s rally and I’m still worried about tax loss harvesting AND hedge fund redemptions that might tank this market sometime now and before the end of the year.   For those bold enough for this market, here are this week’s ETF-Cashinator picks:

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4 Responses to ETF Covered Calls 12-5-2008

  1. The Travelin' Man says:

    Not sure that I can move some money into my brokerage account quickly enough, but I really like QID right now. Purchase today for $66.89, sell the $68 Dec call (11 days or so) and make almost 7.5% if the call for a serious down happens.

    I am inclined to think that there are some folks that will surely be turning some paper losses into tax breaks before the end of the year, and this will make a turn down. If it happens before options expiry, then you make 7.5%. If it happens after expiry – then you make $400 cash up front and wait until the next two or three day down rally comes and sell.

    Now, I just need to take my skirt off and pull the trigger! :-)

  2. RichSlick says:

    That does look tempting but I’ve been burned with these crazy shorting ETFs before too often. I’m fairly sure that this rally isn’t going to last but I don’t know if my skirt will come off, I’m just too shy right now.

  3. The Travelin' Man says:

    Yeah…I’m not much on football analogies, but I think I’ve let you do the “lead blocking” on this one, and I am hoping to run behind you and scoot in for the score! You would think I’ve learned from your lesson, but I just don’t see how we can’t have a serious down period over the next couple of weeks as people take some paper losses and make them tax savings.

  4. RichSlick says:

    It’s crazy out there Travelin’ man. Crazy.

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