I promised an anonymous poster that I’d do a write up on my ETF Covered Call strategy do explain it in detail but I’ve been too busy.  I don’t like writing about “theoretical” returns which is why I put this blog where my money is and write about my transactions almost as soon as they happen.

I held 700 existing shares of EEB and decided to sell 7 call contracts against them to rake in ~$900 today.   I’m long DXD (Dow double short) and I’ve sold calls short (inverse long) and those contracts expire tomorrow.  They’ll likely expire worthless so I’ll be able to sell March calls and possibly rake in $1700 or so next week.

I debated about whether I should wait a little longer before selling the contracts but I figured if my strategy really does make money when the market is up or down then it doesn’t really matter what’s going on with the market today so I pulled the trigger.

With the municipal bond meltdown going on write now, I’m as concerned as ever about this market which is why I’m double short on the Dow right now but with the Fed giving money away, the market can easily bounce back.   Why not gamble with free money anyway?

I hope you’re getting rich slick wherever you are today 🙂 .