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.

UYG_Aug08.png

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.

UYG_Aug08h.png

(click image)

What to do…..what to do?