January Option Investing – EDC Covered Calls

When DRN cleared a resistance level last week, I was REALLY tempted to go all in for the rest of the month. However, I thought about how hypocritical that would sound here on my blog, and decided to practice what I preach (use money management rules).

One lesson learned from last years covered call trading related to meeting cashflow goals; I need to use leveraged ETFs. The volatility creates option premiums high enough to compensate for my relatively small account balance without totally destroying my money management rules.

Long story short, I’ve had my eye on EDC for a while (an Emerging Economy ETF), so I entered some covered calls…just in time for some Egyptian unrest!

Gross Cashflow: ~$630 USD

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About T. Knight
Blogging about my journey to financial independence via investing for cashflow.

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