4 Responses to Trade – OIHGV

  1. The Travelin' Man says:

    Looks like a good day to find something to play with for OIH! I knew you couldn’t just sit on the sidelines the whole time.

    My calculations (which are done, I guess, slightly different than yours) get a little better yield on the whole overall trade. It looks like you bought in for $43k+ and have sold, bought, and sold option contracts for a net of just over $4k in premium since 10/08. Assuming you get called in July, that makes for a little better than 10% in about 8 months, plus the small dividend checks, no?

    If so, it looks like an annualized return for the whole trade of right around 15%.

  2. RichSlick says:

    Shucks T-man, you caught me!

    The Oil & Gas sector is deteriorating rapidly and I wanted to squeeze some cash before everyone realized it. I expect my options to expire worthless but you never know.

    You’re right though, my returns don’t include dividends, last year’s profits or various adjustments and it is around 10% so far.

    If OIH drops significantly, I might buy back those options cheap but anything can happen.

    Israel/Gaza & Russia/Ukrane, and India/Pakistan can all send oil through the roof but that’s not the way I want oil to go up!

    P.S. I’m looking at UYG options too. Just need to get UYG above $7 to make a trade.

  3. The Travelin' Man says:

    Heck…now you busted me. I am still a little ummm…”upside down” on UYG! :-(

    I am hoping to pick up another 100 shares – maybe at around the $7 mark, also, and try to claw my way back into this one. I might even shoot at $6 – who knows?

    The one thing that I can say is that while all of my co-workers are crying about the hits that they took to their retirement accounts, I seem to have outperformed them all (over all of my accounts – taxable and retirement) – as they claim losses of almost 40%. I am still doing all of my calculations, but even with the paper losses, MS Money still thinks I am under 30%. So…if those calculations are right, I seem to have out-performed the market – which, at the end of the day, sure does seem to be everyone’s goal.

  4. Pingback: ETF Covered Calls - Dedicated to searching for optimum returns on Exchange Traded Funds via Covered Calls » ETF Covered Calls 05-29-2009

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