Thursday, July 18, 2013

Rolled S&P 500 Covered Calls Up and Out

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 July $166 call to the Aug $171 call
TRANSACTION RATIONALE:  The S&P 500 has moved up over 4% in the past few weeks causing this hedge to be a drag on performance. The covered call was rolled out to August as described below.

TRANSACTION DATE: Thur. July18, 2013

Action: Buy to Close
Exp. Date: July 20,  2013
Strike: $164
Price: $.4.78

Action: Sell to Open  
Exp. Date: Aug  17, 2013  
Strike: $171
Price: $1.28

Net debit: $3.59/contract after commissions.

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