For those of you who have read this blog for a while, you know that I’ve been down with SSO (leveraged S&P index ETF) for a while ever since the big market crash in 2008. Believe it or not, most of the leveraged ETFs are close to recovering where I bought them. As such I sold 4 contracts (own 400 shares of SSO @ $65) for January 21 2012 $65 strike for $1.65. This will return about 2.5% for the remainder of the year. Not much to brag about however it STILL beats the rate of return on any bank CD. If SSO holds at $65 then I’ll be called out and back in cash for this ETF which means I’ll get back 26k to reinvest.
As a side note, I also sold UNG calls that expire tomorrow and it looks like UNG is below $6 so I’ll be keeping the shares and look to sell more options in the future.
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