Markets Upward Movement Forces the Roll of SPY Covered Calls

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:  SPY   

DESCRIPTION: SPDRs S&P500

TRANSACTION TYPE: Roll the May $158 call to the June $165 call

TRANSACTION RATIONALE:  The S&P 500 continues to climb upward making the covered calls a drain on the overall portfolio return.  With the hint of a pull back late last week CCI rolled the covered call position up and out as described below. 

 

TRANSACTION DATE: Fri.  May. 10, 2013

 

Action: Buy to Close

Exp. Date: May. 18, 2013

Strike: $158

Price: $5.49

 

Action: Sell to Open  

Exp. Date: June 22, 2013  

Strike: $165

Price: $1.67

 

Net debit: $3.91/contract after commissions.