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.

UNDERLYING ETF:  SPY   

DESCRIPTION: SPDRs S&P500

TRANSACTION TYPE: Roll the February $149 to March $154

TRANSACTION RATIONALE:  The market continues its melt up and Feb option expiration is here, so it was time to take the loss on the covered call, preserve the gain in the underlying and move out to the March expiration.

TRANSACTION DATE: Thur.   Feb. 14, 2013

Action: Buy to Close

Exp. Date Feb. 16, 2013

Strike: $149

Price: $3.42
Action: Sell to Open
Exp. Date: Mar. 16, 2013
Strike: $154
Price: $0.92

 

Net debit: $2.59 after commissions.