Thursday, November 14, 2013

Re-established Covered Call in Emerging Market ETF (EEM)

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 (EEM) stopped its recent downward slide today, and CCI used that move to harvest option premium and re-establish the covered call position as described below.
TRANSACTION DATE: Thur 11/14/13 
Action: Buy to Close
Exp. Date: Nov.  16, 2013
Strike: $44
Price: $.01
Action: Sell to Open  
Exp. Date: Nov. 29, 2013 (two weeks out
Strike: $42
Price: $.25
Net Debit: $.23 after commissions

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