Saturday, September 14, 2013

EEM Bounces, Covered Call Rolled Out and Up

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.  


DESCRIPTION: iShares Emerging Market Shares
TRANSACTION TYPE:   Emerging market have bounced the past few weeks. CCI has continued to roll the weekly covered calls in this position as described below.  Given the upward movement in the underlying, the covered calls have been a drag on recent performance. However,  YTD selling the calls have generated approx. 5% in income to offset the bad year for the underlying.  CCI will be looking to roll this call again towards the end of the week.
Action: Buy to Close
Exp. Date: Sept 6, 2013
Strike: $39
Price: $.65
Action: Sell to Open  
Exp. Date: Sep 13 2013 (one week out
Strike: $39.5
Price: $.55
Action: Buy to Close
Exp Date: Sept 13, 2013
Strike: $39.5
Price: $1.52
Action Sell to Open
Exp Date: Sept 20, 2013 (one weeks out)
Strike $41
Price: $.53
Net debit/contract after commissions: $.1.14

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