Rolled Small Cap Covered Call Position

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 

Small cap stocks puled back just enough for to allow CCI to harvest some option premium and reposition the IWM covered call position as described below.

 

TRANSACTION DATE: Dec. 10

Action: Buy to close

Exp. Date: Dec. 13,  2013

Strike: $113

Price: $0.17

 

Action: Sell to Open

Exp. Date: Dec. 21, 2013 (out one week)

Strike: $113

Price: $0.57

Net Credit Contract after commissions: $0.39