Saturday, April 27, 2013

Rolled EEM Covered Call 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. 

DESCRIPTION: iShares Emerging Market Shares
TRANSACTION TYPE: Roll - Emerging market stocks bounced back a little over the past weeks, and the covered call was rolled out and up for a small debit as described below.
Action: Buy to Close 
Exp Date: April 26, 2013
Strike: $42.00 
Price: $.40 
Action: Sell to Open  
Exp. Date: May 10, 2013 (two weeks out
Strike: $42.50
Price: $.44
Net Debit/contract: $.04 after commissions

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