QQQ Covered Call Position Re-established

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:Re-establish Buy/Write

 

 DESCRIPTION:  The continual move up of  QQQ continually and the old position in QQQ was assigned on Friday.  Over the holding period of this lot (since 12/13/12) the position gained 4.0%.  Simply buying and holding the QQQ over the same period would have gain 5.5%.  So as expected, the covered call portfolio underperformed in an up market.  That is the price an investor pays for improved performance in less robust markets.The position was re-established with the trade below.

 

TRANSACTION DATE: Fri. 3/15/13

Action: Buy 

Price: $68.45

 

Action: Sell to Open

 Exp. Date: Mar.28 , 2013 (out 2 weeks ) 

 Strike: $69

 Price: $.35

 

Net Debit: $68.13  after commissions