Pause in the Rise of Small Caps Provides an Opportunity to Reposition Covered Calls

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 and Up

Small Cap stocks finally paused its upward climb today and CCI repositioned the IWM covered call position as described below.

 

TRANSACTION DATE: Dec. 2 

Action: Buy to close

Exp. Date: Dec. 6,  2013

Strike: $110

Price: $2.96

 

Action: Sell to Open

Exp. Date: Dec. 13, 2013 (out one week(

Strike: $113

Price: $1.09

Net Debit/Contract after commissions: $1.96