Monday, October 21, 2013

Rolled Covered Call in Emerging Markets ETF (EEM) 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. 

 DESCRIPTION: iShares Emerging Market Shares 
TRANSACTION TYPE:   The emerging market ETF moved upward last week.  At the end of the week CCI rolled the covered call  position as described below.
Action: Buy to Close
Exp. Date: Oct 19, 2013
Strike: $42.50
Price: $.92
Action: Sell to Open  
Exp. Date: Oct 25, 2013 (one week out
Strike: $43
Price: $.66
Net Debit: $.29 after commissions

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