I’ve been experimenting with my mini account exclusively applying my ETF Covered Call strategy with a single ETF, the leveraged Dow 30, DDM, and the returns have been fairly exceptional even in a down market.

Take a look at the graph below.

DDM_BuyWrite.png

The graph compares the Dow Jones Industrial Average returns with buy/writes on DDM and there’s really no comparison. When the Dow drops, the premiums offset some of the losses and as the Dow raises, a lockable profit gets produced on the upswing.

I’ll continue to the rest of the year using this strategy on this one ETF to find out how well it does over a 12 month period. If successful, I’ll continue with it on through year two.