Looking for ETFs that I can do covered calls on...

[Cabin111]

Would like some ideas. I like to own my stocks and do covered calls on them. Have a lot of cash (retiree) and CDs are yielding nothing. I'm heavy into SLV and JO. Have made good money on those so far. Would like an EFT that may have some yield (1-2%). We pay very little in taxes, so the dividend could be a bonus. Thought??

 

[ET180]

XLP if you're looking for a dividend. The SPDR sector ETFs have pretty good liquidity - XBI,XLP,XLY,XLK,XRT,XOP,XLE,XLF.

 

[narafa]

Check out XLE (If you are ok with tying up some money to the traditional Energy sector). The ETF dividend is around $0.5/share each quarter. At the current price of almost $30, the yield will be around 6.6% per year. You can further enhance this yield by selling covered calls as you mentioned. Although the options might seem like cheap, but you can grab another $40 in option premium for every 100 shares every quarter, that's another 1.3% per quarter or if consistent throughout the year, will add another 5% to the yield (If not assigned).

Even with the case of having the original XLE dividend cut to half (In the future), you will still be getting around 3.3% annual dividend, still better than other ETFs.