Covered Calls On Inverse ETF Pairs?
This didn’t work out, so don’t try it. THESIS: Buy equal amounts of an ETF inverse pair. Dollar value of the hybrid position shouldn’t change much over time. Sell ATM Calls against it weekly to harvest the pure time value in the premiums. I had a crazy thought today while screening ETFs to be candidates for Covered Calls. I was aware of a few “inverse” ETF pairs: Siver, Gold Miners, and Biotech. But I’m finding there are others; many others. …