UNDERLYING ETF: TLT
DESCRIPTION: iShares Barclays 20+ Year Treasury Bond
TRANSACTION TYPE: Rolled May $120 Covered Call to June $121 Call
TRANSACTION RATIONALE: As discussed here another covered call candidate is the long term bond ETF. After a reasonable large run-up/flight to quality in Apr., US treasuries pulled back over the past few days. CCI took advantage of this pull back to roll out the bond covered call position for a modest credit as described below.
FYI, The May covered call resulted in a $1.07/contract gain. That amounts to what is only a .9%/month gain. That seems fairly modest until you compare that to the rate of return for bonds these days. Hmmm...
TRANSACTION DATE: Mon. May 6, 2013
Exp. Date: May 18, 2013
Price: $ 1.38
Action: Sell to Open
Exp. Date: June 22, 2013