Friday, September 20, 2013

Rolled Emerging Market (EEM) Coverd Call 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 stocks continue to rally. As expected, CCIs covered call position was a drag on this position the last week.  The position was rolled out and up  as described below. 
Action: Buy to Close
Exp. Date: Sept 21, 2013
Strike: $41
Price: $.1.95
Action: Sell to Open  
Exp. Date: Sep 27 2013 (one week out
Strike: $42
Price: $1.13
Net Debit: $.84/contract after commissions

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