As discussed here, CCI has a long position in the financial sector etf (xlf) via the Jan 15 $10 LEAP, hedged via and a a shorter term short call in Citigroup (C).
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With only two days until March expiration, CCI rolled the Mar $44 call in C out two weeks to the Mar $28 $44 call for a modest credit. The intent of the relatively short duration roll was to give more time for information about the stress tests and capital plans of the banks to settle into the market.
Since the position was established, simply holding xlf would have gained 7.4%. This specific position benefits from the leverage generated by substituting a LEAP for the ETF but has suffered because the rapid rise in Citigroup stock has made the hedge a liability. Those offsetting situations result in this specific position being up only 6.3% at this point in time. Less than ideal, but that is the cost of having the hedge in place and seeing the market go up. However, there is plenty of time left on the position (Jan 15). The hedge will provide more value in the event the market levels off or pulls back. .