Wednesday, November 12, 2008

Got UYG ?

Got UYG ? Well, the financial ETF may be good at this price if you analyse selling a covered call.

Analyse the following:

One & a half week for November expiration on Nov 21.

If one sells the call for strike price 7 call & earn a premium of .70, it is a 10% return for 10 days.

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For December expiration on Dec 19.

If one sells the call for strike price 7 call & earn a premium of 1.25, it is a 17% return for 5 weeks.

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