Wednesday, June 12, 2013

Rolled IWM Covered Call

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:  IWM    

DESCRIPTION: iShares Russell 2000
 
TRANSACTION TYPE: Roll Out and Down
Small cap. stocks pulled back a little over the last weeks after a nice run up.  CCI used this pull back as an opportunity to roll the IWM covered call position as described below.


TRANSACTION DATE: Wed. Jun 12
Action: Buy to close
Exp. Date: June 22, 2013
Strike: $100
Price: $0.23
 
Action: Sell to Open
Exp. Date: July 20, 2013
Strike: $99
Price: $1.37
 
Net Credit/Contract after commissions: $1.09

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