Yesterday, I began looking at the the Financial Select Sector SPDR, otherwise known by it's ticker XLF. This ETF made a bottom recently, and has found some support at $20 per share. With vols high, my thought was to sell some premium but I did not want to walk into a situation that I may very well regret.
Admittedly, this trade is not sexy. If I am right, and XLF consolidates, I should be able to safely sell premium each month out into January. If XLF drops below $20 per share, I will have a "free" Jan'09 $15 Put to limit my downside. This allows me the choice of taking assignment should the share price fall below $19 per share, then begin selling covered calls. Alternatively, I can simply roll the short put option each month even if it is in-the-money.
This trade won't make me rich, but I should be able to earn a fairly decent yield from it between now and year's end.
Christopher Smith
TheOptionClub.com
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Showing posts with label Exchange Traded Funds. Show all posts
Showing posts with label Exchange Traded Funds. Show all posts
Wednesday, August 6, 2008
Wednesday, April 2, 2008
Do Your Mutual Funds Suck Right Now?
This post is intended for those of us with IRA accounts who are looking for safe, reliable methods of investing our retirement dollars and grow that wealth. Mutual funds have traditionally been the first choice of many financial advisers, but that is rapidly changing.
A growing number of advisers are switching from expensive, fee laden funds to other more flexible financial products. These products are Exchange Traded Funds, which offer the safety of diversity, just like mutual funds, but offer many other benefits.
Take a few minutes right now to learn more about why mutual funds may be hurting you, especially with this year's market, and why you may very well experience quite different results by using a different financial product and by adopting a well conceived financial game plan.
Look...
We had a nice little rally in the market yesterday. It is quite possible that we'll see some additional upside for the next several days. The smart money says this is a "bear market rally," meaning that we'll run for a bit and then head lower.
Mutual fund investors may breath a sigh of relief over the next day, or several days, but if (when) we do head lower their funds will likely head lower too. That bear market rally did them absolutely no good!
There is a better way, though. We know that in every market someone is making money. It just hasn't been you...at least not yet, anyway.
Click on the image above and the video will start up automatically, without need to register or take any further action. Just click, sit back, and learn...
Christopher Smith
TheOptionClub.com
A growing number of advisers are switching from expensive, fee laden funds to other more flexible financial products. These products are Exchange Traded Funds, which offer the safety of diversity, just like mutual funds, but offer many other benefits.
Take a few minutes right now to learn more about why mutual funds may be hurting you, especially with this year's market, and why you may very well experience quite different results by using a different financial product and by adopting a well conceived financial game plan.Look...
We had a nice little rally in the market yesterday. It is quite possible that we'll see some additional upside for the next several days. The smart money says this is a "bear market rally," meaning that we'll run for a bit and then head lower.
Mutual fund investors may breath a sigh of relief over the next day, or several days, but if (when) we do head lower their funds will likely head lower too. That bear market rally did them absolutely no good!
There is a better way, though. We know that in every market someone is making money. It just hasn't been you...at least not yet, anyway.
Click on the image above and the video will start up automatically, without need to register or take any further action. Just click, sit back, and learn...
Christopher Smith
TheOptionClub.com
Tuesday, March 18, 2008
Establishing An ETF Profit Blueprint
We're getting a nice bounce this morning, but we'll need to see if it holds up. Yesterday, with the VIX spiking over two points, I took the opportunity to sell some additional option premium.
Bear Stearns caught a lot of traders, and investors, by surprise. Last night, I shared a video demonstrating how that pain can be avoided by paying aware of the warning signs. Don't misunderstand what's being said there...
It's not about foretelling the future. It's about identifying signs of weakening market support, resisting the temptation to "get in cheap," and developing a plan that allows you to trade in a profitable manner.
Increasingly, over the last few years, I have traded fewer and fewer stocks. I tend to focus on Exchange Traded Funds, or ETF's, for both for my longer term investment accounts and much of my shorter term trading.
These funds tend to reduce the exposure you have to a single stock, while still providing you with the desired exposure to a broad market index or even a narrow market sector.
I, and I'll wager the majority of the investing public, tend to focus on the most popular products such as the DIA, IWM, QQQQ, SPY, etc. There are so many more, however...
A trading friend and mentor of mine has compiled a report on ETF products, and how to trade them, that he is making available in PDF format. I downloaded a copy last night and hit the print button before putting my daughter to bed.
I've just started skimming through it and decided I'd pass this along to you because there is a good amount of information.
The report focuses on a group of funds that have largely remained ignored by the mainstream, but for the last several years have been used by traders quite effectively. While these markets have been around for over a decade, they're just now beginning to gain momentum, but they're still far from 'popular'...
The report answers the top 20 questions about these markets. You'll also discover how you can use this information to breathe some much needed life into your portfolio, regardless of what you already trade.
The report is available on a complimentary basis. To get your copy, just visit this web page:
I don't know how long it will be available, so I encourage you to download the report now.
Trade well.
Christopher Smith
TheOptionClub.com
Bear Stearns caught a lot of traders, and investors, by surprise. Last night, I shared a video demonstrating how that pain can be avoided by paying aware of the warning signs. Don't misunderstand what's being said there...
It's not about foretelling the future. It's about identifying signs of weakening market support, resisting the temptation to "get in cheap," and developing a plan that allows you to trade in a profitable manner.
Increasingly, over the last few years, I have traded fewer and fewer stocks. I tend to focus on Exchange Traded Funds, or ETF's, for both for my longer term investment accounts and much of my shorter term trading.
These funds tend to reduce the exposure you have to a single stock, while still providing you with the desired exposure to a broad market index or even a narrow market sector.
I, and I'll wager the majority of the investing public, tend to focus on the most popular products such as the DIA, IWM, QQQQ, SPY, etc. There are so many more, however...
A trading friend and mentor of mine has compiled a report on ETF products, and how to trade them, that he is making available in PDF format. I downloaded a copy last night and hit the print button before putting my daughter to bed.
I've just started skimming through it and decided I'd pass this along to you because there is a good amount of information.
The report focuses on a group of funds that have largely remained ignored by the mainstream, but for the last several years have been used by traders quite effectively. While these markets have been around for over a decade, they're just now beginning to gain momentum, but they're still far from 'popular'...
The report answers the top 20 questions about these markets. You'll also discover how you can use this information to breathe some much needed life into your portfolio, regardless of what you already trade.
HOW TO GET YOUR COPY OF THE ETF REPORT
The report is available on a complimentary basis. To get your copy, just visit this web page:
I don't know how long it will be available, so I encourage you to download the report now.
Trade well.
Christopher Smith
TheOptionClub.com
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