Get Rich Slick

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This market volatility is great for my ETF Covered Call strategy as it’s been extremely profitable to buy long and simultaneously sell short.  I’ve made $3,000 these past few days and  with the market gyrations, it’s been exceptionally profitable to buy back those contracts on the cheap when the market turns the opposite direction.

I had a feeling that the bailout bill wasn’t going to pass after I read it Sunday night, it just didn’t have anything good in it to solve any real problems.   My guess is that the bill would have simply pushed the problem onto the next administration to deal with it.

I suspect the bill will pass later today or this week with some crazy shenanigans pulled and that may rally the market which would mean more profits to bank

Good hunting.

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So much money to be made in this crazy market.   I raked in $2150 yesterday with the usual buy/write etf strategy.  I just hope it doesn’t blow up in my face……check it out at ETFCoveredCalls.com

Happy hunting………

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I’ve been receiving more and more credit card balance transfer offers in the mail recently and I had pretty much written off credit card arbitrage a while ago since banks had removed caps on their fees for balance transfers.

With the existing credit crunch and depositors skittish about keeping more than 100k in any FDIC bank, I’m wondering why and how banks are able to loan out so much money at low interest rates when they supposedly don’t have any money to lend out.

In any event, I’ll likely borrow 25k at 0.99% and try to turn a few grand out of it fairly quickly and boost my existing 40k arbitrage up to 60k+ to churn some quick profits and improve my cash flow this next quarter.   The fee is capped at $99 so I’m looking at paying $200 in interest and fee to hopefully churn out 2k in profits.   Not bad for a couple of months worth of work if all things go well…..

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UYG is moving up on my list of favorite ETFs. The financial market has been battered by a hurricane of bad news and Uncle Ben has flown in with his helicopter to save the world. If you look at the August in-the-money strikes for UYG, you’ll find that they are trading for 10% premium which is phenomenal (click image below) in an ETF covered call play.

The big question is risk as the SEC short selling rules only will be extended about 30 days max (or at least that’s the theory). If more banks have runs then UYG will completely fall apart as it is a leveraged financials ETF.

What to do….what to do!

Taking a look at the top holdings, it looks almost like a sure bet with the SEC covering most of the major players inside the ETF.

(click image)

What to do…..what to do?

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The week before options expiry usually yields lower returns but $500 is $500 right?  This brings my return for April up to about $2000 for the month.  Not too shabby for clicking a mouse but I’m still desperate for a phone that can handle true HTTPS/SSL requests so I can click my phone to make money.  Any recommendations out there?

Evidently, the iPhone doesn’t support true secure web connections but maybe the next generation one will!

As soon as option expiry ends next week, I’ll focus on making money in May.  You know what they say about May…..Sell in May and go away to keep your losses at bay or the foray will decay your profits away…..

You can learn more over at ETF Covered Calls.

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Steroids and HGH aren’t just for baseball players, these handy little boosters will work wonders for your investment portfolio.   I’ve hinted in the past about a new mathematical model for the ETF-Cashinator that factors in leveraged index funds with covered call writing to boost returns to superior levels and as always, I put my money where my mouth (blog) is and take action.

Yesterday, I banked about $2700 on top of the $900 I made last week but I’m moving toward using my new leveraged model to rake in more profits as I described here.   This essentially goes back to this original mind blowing article written by Jason Kelly here.  I’m convinced that this model can work with pure options plays as well but that’s for another blog and another time.

So how does this whole thing work?

We all know index funds tend to be the better bets on the stock market.  Less than 20% of funds ever beat indexes so it makes index funds a very seductive investment play but how can you make it better?

In a single word: leverage.   If index  funds are good then why can’t leveraged index funds be better?  If you’re dollar cost averaging anyway, why not buy leveraged index funds.  Sure you’ll lose twice as much during down turns but as long as you keep buying you’ll make twice as much on the way back up right?  I like to think of these leveraged index funds as index funds on steroids.

Index funds on steroids can be rewarding but why not add in something a little extra for a little insurance and extra kick!   Mixing leveraged index funds with covered call strategy is exactly that extra kick I’m famous for at this point!  I like to think of the covered calls as HGH so that leveraged index funds with covered calls acts and feels like steroids with HGH enhancement!

So what are the main tactical components.   Well leveraged index ETFs are the ones I like the most right now:

DXD - Double Short Dow

DDM - Double Long Dow

SSO - Double Long S&P 500

SDS - Double Short S&P 500.

I like all of these because they are leveraged up/down and they all trade options with healthy volume.    So my most recent trade was to go double short on the dow (DXD) and sell calls (DXDCI) to be inverse long.  Using this strategy, I banked ~ $2,000 in my power account yesterday.   I then went on to go double long on the Dow (DDM) and sell calls short DDMCT to bank another $700 in my mini account.

So whether the Dow goes up or down from here it should be a profitable move -in theory.  The DDM will be valuable if the market recovers short term or long term and DXD will be profitable if the market tanks or recovers (options).

We’ll see how March expiry plays out.

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This headline might as well read, “Bush, Bernanke support using buckets to bail water out of the Titanic” because that’s what any stimulus package will look like on the USS Titanic Economy at this point.    The chorus is finally gotten loud enough for people to understand what’s going on; it’s a total market meltdown in slow motion that started back in August of 2007.

Fortunately, I’m short as I picked up shares of SDS and will likely get called tomorrow to rake in some additional profit.  My EEB play will expire worthless and I’m looking at selling June or July options for 6% return in this depressing market.

Hope you’re making money today .

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