Russell Small Cap (IWM) Covered Call Rolled

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:  IWM  

DESCRIPTION: iShares Russell 2000

TRANSACTION TYPE: Roll Out 

Vacation season has put CCI a little behind schedule in postings.  Last week, small caps stocks had a modest pull back.  During the beginning of the pull back,  CCI harvested some option premium and rolled the covered call position out to September.  The next day small cap stocks fell significantly and CCI "took a muligan".  Specifically,  CCI lowered the strike on the call thereby harvesting a little premium and hopefully improving the position for the next month.
 

TRANSACTION DATE: Wed. Aug 14

Action: Buy to close

Exp. Date: Aug 19,  2013

Strike: $105

Price: $.21

 

Action: Sell to Open

Exp. Date: Sep 21, 2013

Strike: $106

Price: $1.31

Net Credit/Contract after commissions: $1.02

TRANSACTION DATE: Thur. Aug 15

Action: Buy to close

Exp. Date: Sept, 21  2013

Strike: $106

Price: $.79

 

Action: Sell to Open

Exp. Date: Sep 21, 2013

Strike: $105

Price: $1.13

Net Credit/Contract after commissions: $.44