Monday, December 16, 2013

Rolling Small Cap (IWM) 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 
CCI  harvested some option premium and repositioned the IWM covered call position as described below.
 
TRANSACTION DATE: Dec. 13
Action: Buy to close
Exp. Date: Dec. 21,  2013
Strike: $113
Price: $0.21
 
Action: Sell to Open
Exp. Date: Dec. 27, 2013 (out one week)
Strike: $111
Price: $0.52

Net Credit/Contract: $0.31

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