ETF Covered Calls 07-31-2009

The cheerleaders on CNBC don’t sync with the jeers of the ETF-Cashinator.   I’m still seeing a great deal of volatility for the remainder of the year so I expect a turbulent market moving forward.  My main worry is a steep climb up followed by a hard crash down and all signs are pointing to a September catastrophe but anything can happen.

Here are this weeks picks:

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4 Responses to ETF Covered Calls 07-31-2009

  1. Fletch says:

    I just want to say, great website with nice info. I pop in every once in a while for some covered call ideas. I gotta say though, you’ve been pretty bearish for a while now and the S&P 500 is up 50% from the bottom. Personally, the rally has allowed me to recoup all of my ’08 losses plus a little. I would think someone dedicate to writing covered calls would love all of this volitility. What are you looking for to get back into the market? Because I don’t see volitility disipating anytime soon.

  2. Rich says:

    Fletch,

    I love the volatility, it’s a covered call writers dream BUT and it’s a BIG BUT, the government keeps changing the rules. Just today, I read an article that the SEC is planning on banning flash trading. A while ago they wanted to change the uptick rule and tomorrow they may ban short selling if the market tanks precipitously. Until the government keeps it’s hands off the market, it should be considered a land mine and eventually you’ll get blown up.

    Markets shouldn’t operate with an ever changing rule set on the whim of a politician.

  3. Fletch says:

    I don’t like potential rule changes either, but if you plan to wait until there is no threat of government involvement I think you’ll be in cash until November 2012 or 2016 – or later.

    Most of the proposed changes like the uptick and flash trading is more about politicians trying to look tough on Wall Street and very little of substance will come about. Government intervention to regulate Wall Street, while made with good intentions, are pretty ineffective. Just look at how much of a joke Sarbanes-Oxley has turned out to be or how Goldman Sachs is already back to cranking out record profits. The Street always figures a way around any government regulations.

  4. Rich says:

    I’m anticipating a crash in September. If Sept comes and goes without incident then I’ll probably get back in the game…..

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