Back on November 1st, I bought 200 shares of GDX (gold miners ETF) for $7700 ($38.50/share). I immediately sold 2 contracts for November 17th expiry at $38 strike price for $1.30. I profited $245 (3% return) and the contracts ended up expiring worthless on the 17th so I kept my 200 shares of GDX.

On November 21st, I sold 2 more contracts for December 15th expiry at $39 strike price for $0.90. I pocketed $165 (2% return). Currently, GDX is trading at $40.50 so I will likely get called and have to sell my 200 shares of GDX at $39.00 which means I’ll pocket an additional $0.50 from where I bought it at $38.50. I’ll earn an additional $70 (after commissions).

My initial investment of $7700 has yielded $245+$165+70=$480 (6.23% return) from November 1st thru December 15th.

The trading day isn’t over, the possibility exists that GDX can still dip below $39 in which case I’ll write more contracts for January 07 expiry but if it doesn’t I’m happy with my 6.23% return for the past 45 days ;)

UPDATE:  GDX has closed at $39.76 so I will be called out.  Final return is 6.23% in 45 days.   I’ve updated ETFCoveredCalls.com with the lastest possibilities for January 07 & February 07.   Good luck and happy hunting.