There is a lot of premium available on SPY options that will expire at the end of next week due to the recent market gyrations. I created a covered call, buying SPY at 117.26, selling-to-open May 117 calls at 1.69 for a net investment of 115.57. The Theta (time decay) on these options is $8 per day.
Did covered calls on Oil — bought USO at 37.19, sold-to-open May 37 calls at 1.02 for a net investment of 36.18. Created a bear spread on VIX options today. Betting on VIX going down is forecasting that the market in general will be flat or positive. I sold-to-open June VIX 16 calls at 10.26, bought June VIX 32.5 calls at 1.88 for a …
It’s 12:41AM Eastern time, 10-May-2010 and the Asian markets are up—evidently they are liking the central banks moves to shore up the Euro. I think Greece’s days in the Euro camp are numbered—maybe 6 to 18 months. The UK has shown that it is perfectly OK to be a member of the EU without being on the Euro, and I believe Germany and France …
I closed out the option portion of my covered call on USO, buying back the 41 May call options at .30 (sold them at 1.33). It’s tempting to sell 39 calls now, they are at around .8 right now, but I’m pretty bullish on USO bouncing back.
I did covered calls on USO, selling-to-open the 41 May calls at 1.33 and buying USO at 41.47 for a net investment of 40.17. The US economic situation continues to look up, and the oil spill in the Gulf will do nothing to help the supply situation. Plus it gives companies an excuse to raise oil prices…
