March Madness Buzzer Beater - Rolled IWM Up and Out

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

Held this position until the final hour (something I don't usually like to do) but the market never provided any even small pull back to use as an opportunity to roll the position.   The upward movement in the underlying means that the covered call contract was a drain on performance over the past month.  With IWM trading around $94.60 this afternoon, the covered call position was re-established by rolling up and out as shown below.

 

TRANSACTION DATE: Fri March 15

Action: Buy to close

Exp. Date: Mar. 16, 2013

Strike: $92

Price: $2.66

 

Action: Sell to Open

Exp. Date: Apr. 20, 2013

Strike: $96

Price: $0.73

 

Net Cost/Contract after commissions: $2.02