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.

UNDERLYING ETF:  SPY   

DESCRIPTION: SPDRs S&P500

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.