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Tag Archives: Exchange-traded funds
Constructing a Covered Call Portfolio Using Select Sector SPDRS

Constructing a Covered Call Portfolio Using Select Sector SPDRS

Select Sector SPDRs are unique exchange-traded funds that divide the S&P 500 into nine sector index funds.  They have the diversity of a mutual fund, the focus of a sector fund, and the tradability of a stock. Together, the nine Select Sector SPDRs represent the S&P 500 as a whole. However, each Select Sector SPDR can also [...]

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Complex and Leveraged Exchange-Traded Funds

Complex and Leveraged Exchange-Traded Funds

With more and more Blue Collar Investors using online discount brokers as their trading platforms the need to be aware of the risks of complex and leveraged exchange-traded funds has become critical. Buyer beware! Covered calls can be written on many of these securities but is the risk justified? First let’s review some definitions previously discussed [...]

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Exchange Traded Funds (ETFs) and Covered Call Writing

Exchange Traded Funds (ETFs) and Covered Call Writing

A critical requirement of my system is to be properly diversified by stock, industry and cash allocation. No one stock or industry should represent more than 20% of your portfolio holdings. Owning five different stocks in five different industries would require you to own at least 500 shares since each options contract represents 100 shares. [...]

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