iShares MSCI Australia (EWA) Options

Those Puts and Calls just keep printing money!

I am in it as a Basic Materials play.

Got my hands bloody on the falling knife. Ozzie's dollar was a bit too pricey. Ben's dollars could be next.

My margin interest rate is down to 3%.

The money machine keeps printing money!

This looks like a license to print money. What am I missing here?

For anyone interested, this has been an absolute license to print money month after month after month.

Australia: Safe Haven Or Just Core Exposure?

http://seekingalpha.com/article/812451-australia-safe-haven-or-just-core-exposure

This looks like a license to print money.

It was.

I did.

iShares MSCI Australia Index Fund (NYSE: EWA) CASSH's commodity reputation is extended by Australia . The retreat from the risk-on trade hampered the iShares MSCI Australia Index Fund earlier this year. That is to be expected when an ETF devotes more than 22 percent of its weight to materials equities. BHP Billiton (NYSE: BHP), the world's largest mining company, is EWA''s top holding.
EWA rose moderately over the past 90 days, gaining 2.7 percent. As risk appetite has crept back into the market over the past month, EWA has surged 8.5 percent. In addition, EWA has a trailing 12-month yield of about 4.7 percent.

EWA: ETF Outflow Alert
ETFChannel.com ETFChannel.com, Contributor

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares MSCI Australia Index Fund (AMEX: EWA) where we have detected an approximate $20.9 million dollar outflow — that’s a 0.9% decrease week over week (from 106,600,000 to 105,600,000).


The chart below shows the one year price performance of EWA, versus its 200 day moving average:

iShares MSCI Australia Index Fund 200 Day Moving Average Chart

Looking at the chart above, EWA’s low point in its 52 week range is $18.91 per share, with $26.29 as the 52 week high point — that compares with a last trade of $21.24. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique — learn more about the 200 day moving average ».

Special Offer: Find out what Dave Moenning is holding in the ETF Channel Flexible Growth Investment Portfolio with a special 20% off coupon from Forbes and 30 Days Free.

Exchange traded funds (ETFs) trade just like stocks, but instead of ”shares” investors are actually buying and selling ”units”. These ”units” can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.

This looks like a license to print money. What am I missing here?

It continues to look like a license to print money.

The dividend is $0.45560. Add to that the premium of $0.35 I got for the July Calls and it's $0.8056 to cover my borrowing cost of $0.07!

I'll just keep rolling this as long as I can and pocket the money.

EWA Dividend $0.45560 payable 6/28


http://us.ishares.com/product_info/fund/distributions/EWA.htm

Australia Index (EWA) Showing Bearish Technicals But Could Break Through $21.70 Resistance



http://www.wikinvest.com/wikinvest/api.php?action=viewNews&aid=3982659&page=Stock%3AIShares_MSCI_Australia_Index_Fund_%28EWA%29&format=html&comments=0

Someone tell me what I'm missing here:

EWA is near the low end of it's trading range.

At 3.75%, I can use margin to buy EWA @ 7 cents a share per month.

I can sell a July 22 Covered Call for ~35 cents, which is 5x the margin interest.

EWA pays a dividend late in June. Last year it was 25cents and it's been rising since the financial crisis.

So income of about 60 cents and interest charge of about 7 cents for an out of the money July $22 call.

This looks like a license to print money. What am I missing here?