Tuesday, June 4, 2013

Re-established a Covered Call Position in EEM

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 haven fallen over the past weeks. The May 31 $43.50 options expired this past weekend generating a $.43/contract gain to somewhat mitigate the loss in the underlying ETF.  CCI re-established a covered call position as described below.
Action: Sell to Open  
Exp. Date: June 14, 2013 (two weeks out
Strike: $42
Price: $.42
Net credit/contract: $.40 after commissions

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