Friday, January 18, 2013

Rolled SPY Option Out and Up

The Index Covered Call Trading Plan  (aka: ICC) is CCI's approach for managing a position of index ETFs and related covered calls.  The most recent trade against this plan is described below.  A reader can find details about the rational and management of the trades at the ICC trading plan tab on CCI's home page.


TRANSACTION TYPE: Roll the January $147 call to the February $149
TRANSACTION RATIONALE:  Approaching option expiration the option position was rolled out and up.  The January option made a very small, immaterial addition to profits while providing a hedge if the market had gone down instead of up. 

TRANSACTION DATE: Fri  Jan 18, 2013

Action: Buy to Close
Exp. Date Jan 19,2013
Strike: $147
Price: $.94
Action: Sell to Open
Exp. Date: Feb. 16, 2013
Strike: $149
Price: $1.32
Net Credit: $.31/contract after commissions

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