Fri 8 Dec 2006
Why I Love ETF Covered Calls
Posted by RichSlick under MMO
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Cash flow, cash flow, cash flow! I just updated www.etfcoveredcalls.com on my recent trades. I liquidated my EXPE position because it was taking too long to recover fully. I still made a small profit but I decided to move forward because so many profitable opportunities were passing me by…
Right now I purchased 1000 shares of SMH (Semiconductor ETF) and sold 10 January Calls to reap a cool 2.4% in a 42 day window. If I get called my total return will be 4.7% in 42 days. What I love best though is fact that the “cash is in the bank” regardless of what happens with SMH! Immediately upon writing a call, you get to collect the premium! Thank you Ron Groenke!
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Pingback from Yet Another $750 In Profit? » Get Rich Slick
February 24th, 2007 at 3:21 pm[...] I planted a money tree back in early December. The first harvest (in December) brought in about $850 in cash. The tree bore another fruitful harvest of about $750 in February. My money tree (SMH) spiked up close to 2% and if the trend continues I’ll likely get called at $35 in mid March during options expiry. If SMH stays above $35, then I’ll earn an additional $750 on March 16th. This would bring total cash flows from December thru March to $2,350. [...]