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Agribusiness ETF (MOO) a long term trade with income stream

In many of my previous posts I mentioned that I like my investments to create income, which can be used for further investments. There is an ETF which can provide this opportunity. It is Agrobusiness ETF (MOO) and it trades in a channel and it touched its lower boundary of the range. It is highly expected that over some mid-term time the ETF will go back up to the upper band of the range.

So my outlook and goal here is to hold this ETF for a couple of months and sell covered calls against it to create a stream of income. So this trade will be an investment and not short term trade. Ideal entry point would be at or around $44.17 per share and I will buy at least 100 shares to allow selling calls against it. If the ETF will act as expected I should make capital gains as the stock continues up to its upper band of the channel and I should collect some cash from sold calls.

Happy Trading!

4 responses to “Agribusiness ETF (MOO) a long term trade with income stream”

  1. Sean says:

    are you loosing money on your covered calls today? It is a danger of this strategy. But if you endure to the end you may make money by exercising your options and sell the stock, your profit will be on the stock as well as premium, great way to boost your income. Ideally you want your option expire worthless.

  2. Rex says:

    There’s noticeably a bundle to learn about this. I assume you made certain nice factors in options also. Sometimes covered calls may be dangerous!

  3. Selene Gorsline says:

    Interesting investment idea! I have never heard about it.

  4. “Rumor is Bank of America is deep into bankruptcy negotiations with the Federal Reserve and Justice department. Along with tons of other has been US companies”.

    Should we be suprised. The country was nearing bankrupcy a short time ago and the way
    things are going politically it may well still be tetering on the edge. I guess soon we will be
    in the category of has been countries.

    Is there a law firm in the country big enough to handle that bankrupcy. A guess the Justice
    Department cound do it.

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