Thursday, June 20, 2013

Rolled 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.

TRANSACTION TYPE: Roll the June June $165 call to the July $164 call
TRANSACTION RATIONALE:  This weeks market sell off created the opportunity to take profits and re-position hedges.  In this case rolling the SPY covered calls as described below.
TRANSACTION DATE: Thur.  June.20, 2013
Action: Buy to Close
Exp. Date: June 22,  2013
Strike: $165
Price: $.06
Action: Sell to Open  
Exp. Date: July 20, 2013  
Strike: $164
Price: $1.54
Net credit: $1.41/contract after commissions.

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