Here’s a graphical representation of one of my accounts utilizing the ETF Covered Call strategy and it shows how my returns beat the Dow Jones Industrial Average, S&P 500, Russell 2000, and Nasdaq composite from Q1 thru Q3 2007.  I’ll post the 2007 results sometime in January.

First up, ETF Covered Calls vs. Dow Jones Industrial Average

etfcc_vs_Dow.png

Next, ETF Covered Calls vs. S&P 500

etfcc_vs_sp500.png

next, ETF Covered Calls vs. Nasdaq Composite

etfcc_vs_nasdaq.png

and finally, ETF Covered Calls vs. Russel 2000 Index

etfcc_vs_r2k.png

What I truly love about this strategy is that it provides an “escape” route during rallies and protection during pull backs and dips.   Right now, my arbitrage account got assigned which means I’ve locked in my profit and am currently sitting in cash.  My mini-account covered calls didn’t get assigned so I still own the shares in UNG which means I can sell on Monday for a profit or sell November or January calls to earn additional profit and buy downside protection.

Only time will tell if this is a profitable long term investment strategy but I’m sticking with it for a while since it’s working so well for me.  To see the transactions, click over here.