Rolled Emerging Market (EEM) 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: EEM     

DESCRIPTION: iShares Emerging Market Shares

 

TRANSACTION TYPE:   As part of last weeks overall market sell-off, emerging market stocks finally moved away from the very tight trading range it has been in for the past 5 weeks.  With this pull back CCI rolled the weekly EEM covered call twice both times harvesting some premium to dampen the drop in the price of the  underlying ETF.  Transaction details below.

 

TRANSACTION DATE: Fr.  8/17/13 

 

Action: Expire

Exp. Date: Aug 16, 2013

Strike: $40

Price: $.00

 

TRANSACTION DATE: Tues 8/20

Action: Sell to Open  

Exp. Date: Aug 23 2013 (one week out) 

Strike: $39

Price: $.22

 

TRANSACTION DATE: Thurs 8/22

Action: Buy to Close

Exp Date: Aug 23, 2013

Strike: $39

Price: $.03

 

Action Sell to Open

Exp Date: Sept 6, 2013 (two weeks out)

Strike $39

Price: $.32

 

Net credit/contract after commissions: $.48