Rolling QQQ Covered Calls

The Index Covered Call (aka: ICC) trading plan 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.

UNDERLYING ETF: QQQ 

DESCRIPTION: Power Shares NASDAQ 100

TRANSACTION TYPE: Roll

QQQs have moved markedly higher since the last covered call position was taken over the holidays.  With one day to go until expiration it was time to take the loss in the covered call contract, preserve some of the gain in the etf and  and roll out to another strike.

 

TRANSACTION DATE: Thur. 1/10/13

Action: Buy to close

Exp. Date: Jan. 11, 2013 (weekly)

Strike: $65.00

Price: $2.14

 

Action: Sell to Open

Exp. Date: Jan. 25, 2013 (weekly, out 2 weeks)

Strike: $66

Price: $1.52

 

Net Cost/Contract after commissions: $.675