I just sold four contracts on OIH for $5.10 to rake in about $2000 in cold hard cash. This will amount to a 4.26% return in under 31 days if assigned using $119.52 as my cost basis. Note: I’ve already raked in additional cash on this puppy in previous transactions. I actually anticipate OIH dropping in March below $120 so I can buy back my calls cheap and sell into the future (April, July, January 2011). My anticipation on drop is based on winter going away thus lowering demand for heating oil and natural gas. Natural gas prices have been in the gutter lately and that gutter is about to get nastier. Note: Long term natural gas and energy prices will spike up and have been priced into markets already so please don’t send me troll posts asking why I am both shorting energy and long energy – it’s complicated!
ETF Covered Calls website is for educational and entertainment purposes only. Any investment activity is not without risk including loss of principal. Neither this website nor its authors assume any responsibility arising from the use or misuse of any information presented in this blog. You are urged to contact a financial adviser before making any investment decisions. Past performance is no indication of future performance.
© ETFCoveredCalls.com
