Rolled EEM Covered Call Out and Down

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: EEM   

DESCRIPTION: iShares Emerging Market Shares

 

TRANSACTION TYPE:  Roll Out and Down

Emerging market stocks continue their swoon, and hence the June 28 $40.5 options became essentially useless as a hedge.  Late last week CCI closed that call for $.01 and a gain of $.27/contract.  At the same time CCI re-established a covered call as described below. 

 

TRANSACTION DATE: Thur 6/27/13

 

Action: Buy to close 

Exp. Date: June 28, 2013 

Strike: $40.50

Price: $.01

 

Action: Sell to Open  

Exp. Date: July 5, 2013 (one weeks out) 

Strike: $38

Price: $.31

 

Net credit/contract: $.29 after commissions