Wednesday, March 13, 2013

Rolled SPY Covered Calls Up and Out...Again

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.


TRANSACTION TYPE: Roll the March $154 Call to the April $157 Call
TRANSACTION RATIONALE:  The market continues its melt up and Mar. 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 April expiration.

TRANSACTION DATE: Wed.   Mar. 13, 2013

Action: Buy to Close
Exp. Date Mar. 16, 2013
Strike: $154
Price: $1.73 Action: Sell to Open Exp. Date: Apr. 20, 2013 Strike: $157 Price: $1.18
Net debit: $.64/contract after commissions.

No comments:

Post a Comment