Rolled IWM Covered Calls

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.

UNDERLYING ETF:  IWM   

DESCRIPTION: iShares Russell 2000

TRANSACTION TYPE: Roll

The small cap index moves higher and higher.  With just 4 days until expiration and the option delta of 90 it was time to roll out and up to March.   The upward movement in the underlying means that the covered call contract was a drain on performance over the past month.

 

TRANSACTION DATE: Tues  2/12/13

Action: Buy to close

Exp. Date: Feb. 16, 2013

Strike: $88

Price: $2.93

 

Action: Sell to Open

Exp. Date: Mar. 16, 2013

Strike: $92

Price: $0.93

 

Net Cost/Contract after commissions: $2.09