Ok so to follow up, here is what happened. On the day my option...

Ok so to follow up, here is what happened.

On the day my option expired, the ETF closed at $18.65. So the option that I previosly sold expired, because no-one would want to buy stock off me at $19.00. I was now up $0.88 per share on my stock position, and I made $0.58 per share by selling the option contract.

Now it is a new month and I look to do the same thing all over again. So I sell another $19.00 call option expiring in 25 days time and receive $0.66 per share, which is another 3.71% return I have generated. Again my only disadvantage to those just buying the stock, is that my profits are capped to $19.00 per share over this 25 day period.

This is now 2 consecutive months where I have generated in excess of 3.5% income off my investment. If I did this for just 6 months of the year, I would end up getting more than a 20% return! Based on today’s prices, since my first post, I am up by 3.21% in capital, PLUS 6.9% in income generated by selling call options, giving me a total return of 10.11%. Compare that to all those here who bought and held OOO from the date of my original post, well you are only up less than 3.5%.

Have I convinced anyone yet?

Mupendra, there are loads of oil ETF’s in the US. An extensive list is here:
http://etfdb.com/type/commodity/energy/crude-oil/
However I stick to the top two on the list.

Remember the primary drawcard is all about the ability to sell options over the shares I own. If you want more info on trading the options and how to work it, I can point you in the right direction.