Covered Call Writing With Exchange Traded Funds (ETFs): Double-Digit Returns, Diversification, Downside Protection [Plastic Comb]

Paul D. Kadavy (Author)

Book Description

Publication Date: July 1, 2009

THIS BOOK INCLUDES ALL OF THE NEWEST ETFs OFFERED AND A DATABASE ON THOSE ETFs FOR WHICH COVERED CALL WRITING IS NOW AVAILABLE.

Covered Call Writing with Exchange Traded Funds (ETFs) is a tutorial investment program designed for investors who utilize Exchange Traded Funds (ETFs) and who desire to learn about and implement a covered call writing strategy to achieve conservative double-digit returns. It is primarily for investors who have some knowledge of stock market and Exchange Traded Fund investing but are new to covered call writing. As a companion book to COVERED CALL WRITING DEMYSTIFIED for ETF investors, it simplifies, fully explains, and instructs investors on how to use covered call option writing on ETFs. The program outlined in the book offers perhaps the single best opportunity to achieve double-digit investment returns in the slow growth or no growth stock market expected by many experts in the future. This strategy works best in such a market environment. The investment approach of writing covered call options, a more conservative investment strategy than just owning stocks or ETFs alone, has been available for decades. Until now, however, it has often been unknown or misunderstood by many investors, especially its use in conjunction with ETFs.

Why is Covered Call Writing with Exchange Traded Funds(ETFs) needed? Many nationally recognized investment experts believe that the U.S. stock market in the future will most certainly produce significantly lower returns than the high returns of the past for many years to come. Some noteworthy examples:

* The long-term prospects for equities in general is far from exciting. - Warren E. Buffett, The Chairmans Letter, Berkshire Hathaway, Inc. Annual Report.

* Over the next century you should expect your share prices to average 6% (return) a year. Over the next five years, ten years, I think you will be lucky to come out even on share prices. - Sir John Templeton, now deceased pioneer in the mutual fund industry, Business Center, CNBC TV Interview.

Covered Call Writing with Exchange Traded Funds (ETFs) is unique because:

(1) A list of all U.S. Exchange Traded Funds is provided by category, specifically indicating those ETFs that offer covered call writing. ETFs on which covered call writing is available is ranked according to the extent of call option writing choices available and the volume of option trading to assist investors with selection of the best alternatives for covered call writing. Extensive other information about each ETF is also provided on an Excel template.

(2) A detailed investment program is outlined for personal implementation to assist investors in achieving consistent double-digit returns utilizing covered call writing on Exchange Traded Funds. This investment strategy is most effective in a slow growth or no growth stock market, the kind of market projected in the future by so many investment experts.

(3) The entire subject matter is centered on a focused area of standardized options--covered call writing on ETFs an investor owns or acquires in the future.

(4) A complete education on the subject is provided.

(5) Unlike other books about options, it is easy to understand by any investor.

(6) Easy-to-use Microsoft Excel templates for PC use as well as manual worksheets are provided to assist in making specific investment decisions regarding which covered calls to write on ETFs, to effectively track results, and for other planning purposes.

Editorial Reviews

From the Author

I have successfully used the strategy of covered call option writing personally for almost twenty years. During that time, I have continually looked for books on the subject. I have never yet found one book that both (1) is totally dedicated to providing an education to the investor exclusively on covered call writing, and (2) provides a program for use by the investor to implement a covered call writing strategy. Virtually all of the books on the subject cover the broad spectrum of option investing, including ultra speculative uses as well as conservative ones. In addition, the authors I have encountered seem to feel it is necessary to impress the reader with their knowledge by making the subject matter virtually unintelligible.

I wrote "COVERED CALL WRITING WITH EXCHANGE TRADED FUNDS (ETFs)" as well as "COVERED CALL WRITING DEMYSTIFIED" (for use in covered call writing with individual common stocks) because there are no other books like them on the market. All levels of investors who have a basic understanding of the stock market and Exchange Traded Funds can also readily understand them. They have everything an investor needs to actually implement a personal program of covered call writing on ETFs or individual stocks owned or acquired in the future. Excel templates for PC use are included with the books. These are templates I’ve developed and used personally to make quality call option writing decisions and to keep accurate records of performance. Manual worksheets are also included so that investors who don’t use a computer can fully implement the program.

About the Author

As a thirty-year career banker and trust officer for Norwest Corporation, now Wells Fargo & Co., one of the nation's largest financial institutions, Paul D. Kadavy was president of numerous banks in three states. He also headed a multi-billion dollar trust department, managed a team of investment professionals, and was a trusted advisor to many of the banks' individual clients. He also subsequently served as president and chief executive officer for another banking enterprise in Las Vegas, Nevada. He is now retired from banking and is a writer, teacher and public speaker.

Kadavy has served on the faculty of the National Graduate Trust School at Northwestern University, The Schools of Banking, Inc., the American Institute of Banking and numerous community colleges in several states. He has been a lecturer on trust, investment and banking subjects to FDIC and Federal Reserve Bank examiners in Washington, D.C. He has been a public speaker for the past twenty-five years.

In addition to authoring Covered Call Writing with Exchange Traded Funds (ETFs) , Kadavy has also written Covered Call Writing Demystified, Put Option Writing Demystified, Covered Call Writing with Qs and Diamonds, Writing Uncovered Put and Call Combinations, Short Spider Straddles, Put and Call Option Writing for the Investment Advisor and Financial Planner, Personal Cash Flow and Net Worth Planning Demystified and The Book of World-Class Quotations: The Best of the Best Quotations on Earth. All of his books are available on Amazon.com.

In addition to writing books, he is the author of banking, trust and investment articles for such national publications as Financial Review, Trusts & Estates, Pension World, The Collector/Investor, Cases & Comment and American Bankers Association Trust Management.

He has developed and successfully used the principles in his books for over twenty-five years.

Product Details

• Plastic Comb: 194 pages
• Publisher: Arrow Publications (July 1, 2009)
• Language: English
• ISBN-10: 0971551421
• ISBN-13: 978-0971551428
• Product Dimensions: 8.4 x 5.9 x 0.6 inches
• Shipping Weight: 10.4 ounces (View shipping rates and policies)
• Average Customer Review: 3.7 out of 5 stars  See all reviews (14 customer reviews)
• Amazon Best Sellers Rank: #888,188 in Books (See Top 100 in Books)

More About the Author

As a thirty-year career banker and trust officer for Norwest Corporation, now Wells Fargo & Co., one of the nation's largest financial institutions, Paul D. Kadavy was president of numerous banks in three states. He also headed a multi-billion dollar trust department, managed a team of investment professionals, and was a trusted advisor to many of the banks' individual clients. He also subsequently served as president and chief executive officer for another banking enterprise in Las Vegas, Nevada. Now retired from banking, he is a writer, teacher and public speaker.

Kadavy has served as a faculty member of the National Graduate Trust School at Northwestern University, The Schools of Banking, Inc., the American Institute of Banking and numerous community colleges in several states. He was a lecturer on trust, investment and banking subjects to FDIC and Federal Reserve Bank examiners in Washington, D.C. He has been a public speaker for the past twenty-five years.

He has written many banking, trust and investment articles for such national publications as "Financial Review," "Trusts & Estates," "Pension World," "The Collector/Investor," "Cases & Comment" and "American Bankers Association Trust Management."

Kadavy is the author of many financial and other books including "Covered Call Writing Demystified," "Covered Call Writing with Exchange Traded Funds (ETFs)," "Covered Call Writing with Qs and Diamonds," "Put Option Writing Demystified," "Writing Uncovered Put and Call Combinations," "Short Spider Straddles," "Put and Call Option Writing for the Investment Advisor and Financial Planner," "Personal Cash Flow and Net Worth Planning Demystified" and "The Book of World-Class Quotations: The Best of the Best Quotations on Earth." His books are available on Amazon.com.

Kadavy has completed his first novel and is currently working on a second novel, both of which he plans to publish around the end of the year.

Customer Reviews

Most Helpful Customer Reviews

14 of 14 people found the following review helpful:

5.0 out of 5 stars THIS BOOK IS AHEAD OF ITS TIME, December 1, 2002

By 

Marty Karman (California) - See all my reviews

This review is from: Covered Call Writing With Exchange Traded Funds (ETFs): Double-Digit Returns, Diversification, Downside Protection (Plastic Comb)

The use of Exchange Traded Funds is rapidly replacing mutual funds as the investment of choice for stock investors. Yet, even so, with the long-term prospect of stock prices growing much more slowly than in the past, new ideas are needed to achieve acceptable returns. "Covered Call Writing With Exchange Traded Funds (ETFs)" offers a turnkey solution for double-digit investment results. Its "how to" program provides what in my view is an optimum situation...diversification through the use of ETFs and increased returns through covered call writing. Since covered call writing can't be done on mutual funds, ETFs are becoming the logical choice for investors because of this and for many other reasons described in the book. The ability to write covered calls on ETFs just adds frosting to the cake. As investors experience only slow growth in their stock portfolios over the coming years, as I believe they will, this book, and a similar book for individual stocks, "Covered Call Writing Demystified," should find a growing audience.

19 of 21 people found the following review helpful:

5.0 out of 5 stars OUTSTANDING FOR NEW CALL WRITERS, August 12, 2003

By 

"jobruckner" (Baltimore) - See all my reviews

This review is from: Covered Call Writing With Exchange Traded Funds (ETFs): Double-Digit Returns, Diversification, Downside Protection (Plastic Comb)

This book was written for investors that are new to covered call writing and want the diversification they can get from ETFs. I just wanted to throw my two cents worth in, because the reviewer who said the book wasn't of any value because he's an expert call writer obviously missed the point. The description of the book clearly states that it is for those of us who are new to this. Didn't he bother to take time to read the book description? I might agree that if you are really an "expert" at this already, you probably don't need this book. But a real expert would have read the book description to see if it made any sense for him to buy it. All I can say is that I'm very glad I bought two of Kadavy's books about covered call writing (also bought "Covered Call Writing Demystified"). For those of us who bought all of the wrong stocks during the bubble and watched them go down, the combination of buying diversified ETFs and writing covered calls on them should be good for solid returns way into the future. This book will tell you what it is all about and how to do it too in a way that you can understand and work for yourself without some broker churning your account.

15 of 16 people found the following review helpful:

5.0 out of 5 stars A MOST TIMELY AND PROFITABLE BOOK, March 29, 2003

By 

Victoria Gorman (California) - See all my reviews

This review is from: Covered Call Writing With Exchange Traded Funds (ETFs): Double-Digit Returns, Diversification, Downside Protection (Plastic Comb)

I am new to covered call writing, but have found this book to be my solution to the stock market doldrums. I liquidated my poorly performing mutual funds and have purchased ETFs with the help of the information provided in this book. I then started writing covered calls on them. So far my results easily substantiate the book's claim that double-digit returns are there to be had using this strategy. For the first time in several years I have some hope of recovering my losses.

A real side benefit for me is that the income I get from covered call writing is tax free. I'm using my past mutual fund losses to offset the nice gains I'm realizing from writing covered calls!

I'd highly recommend this book to anyone, but particularly smaller investors who can't get broad divesification through individual stock ownership. The strategy is also excellent for those who have losses. As in my case, you should be able to use those past losses to offset the gains from your call writing so that no taxes have to be paid.