UNDERLYING ETF: QQQ
DESCRIPTION: Power Shares NASDAQ 100
TRANSACTION TYPE: Roll
DESCRIPTION: Unfortunately, CCI has fallen a little behind with posts on the QQQ covered call position. The last post discussed the establishment of the May 3 $69.50 call. After that position was established, QQQ continued to move substantially higher and CCI let the underlying position be called away. Since that position was initiated on March 18 until its closure on May 3 it returned 2.25%. Not bad for seven weeks (about 18% annualized). Of course this was in an up market, so as anticipated this strategy "made less in an up market". As often discussed, this strategy should also "lose less" in a down market and make more in sideways market.
On May 29, CCI re-established the position buying the QQQ at $73.43 and at the same time selling the June 7 $74 call for $.42. With the market down today, CCI rolled that position out a week, harvesting $.36/contract (just under .5%). Specifics of the last transaction are shown below.
TRANSACTION DATE: Th. 6/6/13
Action: Buy to Close
Exp. Date: June 7, 2013
Exp. Date: June 14, 2013 (out an additional week)
Net Credit: $.45/contract after commissions