Rolled SPY Covered Call Down

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: SPY 

 

 DESCRIPTION: SPDR S&P500 

 

TRANSACTION DESC:  The S&P 500 pulled back this past week and CCI used the opportunity to harvest some option premium and roll the covered call position down $3 strikes as described below.

TRANSACTION DATE: Fri.  9/27/13

 

Action: Buy to Close

Exp. Date: Oct. 19, 2013

Strike: $175

Price: $.19

Action: Sell to Open  

Exp. Date: Oct 19 2013

Strike: $172

Price: $.79

Rolled EEM Covered Calls Again

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: EEM     

DESCRIPTION: iShares Emerging Market Shares

 

TRANSACTION TYPE:   Emerging market stocks pulled back earlier this week, and CCI used this opportunity to harvest option premium and re-establish the covered call strike above the market as described below.

 

TRANSACTION DATE: Tues  9/24/13  

 

Action: Buy to Close

Exp. Date: Sept 27, 2013

Strike: $42

Price: $.29

 

Action: Sell to Open  

Exp. Date: Oct 4, 2013 (one week out) 

Strike: $42.5

Price: $.31

 

  Even after commissions

Closed Covered Call in C

As discussed here CCI has a long position in the financial sector etf (xlf) via the Jan 15 $10 Call, that has usually been hedged via a shorter duration short call in Citigroup (C).

C's stock price dropped today (allegedly on rumors of potential poor trading profits).  The price drop made the short call essentially useless as a hedge so CCI closed the covered call position at $.07/contract after commissions. CCI will be looking to re-establish this type of position factoring in the potential volatility in the stock around Oct 15 earnings. 

Since inception on Jan 8, the performance of various holdings are shown below

• The XLF etf has slumped  a little over the past weeks but is still up 18.8%! (including dividends)
• The leverage obtained by instead simply holding the Jan 15 $10 call would have returned 43.4%.
• The leveraged, long/short strategy defined in this thread is up 41.9%.

Rolled Covered Call in IWM Out and Up

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 continued to perform well.  CCI rolled the IWM covered call position out and up and described below.

TRANSACTION DATE: Fri, Sep 20

Action: Buy to close

Exp. Date: Sept 20,  2013

Strike: $105

Price: $1.93

 

Action: Sell to Open

Exp. Date: Oct. 19, 2013

Strike: $108

Price: $1.13

Net Debit/Contract after commissions: $.80

Rolled Emerging Market (EEM) Coverd Call Out and Up

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: EEM     

DESCRIPTION: iShares Emerging Market Shares

 

TRANSACTION TYPE:   Emerging market stocks continue to rally. As expected, CCIs covered call position was a drag on this position the last week.  The position was rolled out and up  as described below. 

 

TRANSACTION DATE: Th  9/19/13  

 

Action: Buy to Close

Exp. Date: Sept 21, 2013

Strike: $41

Price: $.1.95

 

Action: Sell to Open  

Exp. Date: Sep 27 2013 (one week out) 

Strike: $42

Price: $1.13

 

Net Debit: $.84/contract after commissions

Rolled SPY Covered Call 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. 

UNDERLYING ETF: SPY 

 

 DESCRIPTION: SPDR S&P500 

 

TRANSACTION DESC:  The S&P 500 continues to move up.  CCI rolled the monthly covered call out and up.

TRANSACTION DATE: Wed.  8/15/13 

 

Action: Buy to Close

Exp. Date: Sep 21, 2013

Strike: $171

Price: $.14

Action: Sell to Open  

Exp. Date: Sept 21 2013

Strike: $167

Price: $1.02

 

TRANSACTION DATE: Wed.  9/18/13

 

Action: Buy to Close

Exp. Date: Sep 21, 2013

Strike: $167

Price: $6.12

Action: Sell to Open  

Exp. Date: Oct 19 2013

Strike: $175

Price: $1.04 

 

Re-established Covered Call in C

As discussed here CCI has a long position in the financial sector etf (xlf) via the Jan 15 $10 Call, that has usually been hedged via a shorter duration short call in Citigroup (C).

Since the last post about this position here,  both the XLF etf and C have generally moved sideways. That means CCI was able to harvest option premium on C's  Aug 9 $52.50 covered call and then again on the Aug 23 $53 call.  With the market up this morning CCI re-established the hedge for this position by selling the Oct 4 $53 call for a $.32/contract credit.

Since inception on Jan 8, the performance of various holdings are shown below

• The XLF etf is up a very nice 20.1%! (including dividends)
• The leverage obtained by instead simply holding the Jan 15 $10 call would have returned 47.4%.
• The leveraged long/short strategy defined in this thread is up 43.8%.

Obviously, being long a market that goes up 20% is going to be a good thing! (if only all my selections went 20% in the right direction...lol)  This approach, which doubled the returns with the leverage of the Leap while somewhat offsetting the related risk with the short call position, has worked well.   Stay tuned.

EEM Bounces, Covered Call Rolled Out and Up

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: EEM     

DESCRIPTION: iShares Emerging Market Shares

 

TRANSACTION TYPE:   Emerging market have bounced the past few weeks. CCI has continued to roll the weekly covered calls in this position as described below.  Given the upward movement in the underlying, the covered calls have been a drag on recent performance. However,  YTD selling the calls have generated approx. 5% in income to offset the bad year for the underlying.  CCI will be looking to roll this call again towards the end of the week.

 

TRANSACTION DATE: Th  9/5/13 

Action: Buy to Close

Exp. Date: Sept 6, 2013

Strike: $39

Price: $.65

 

Action: Sell to Open  

Exp. Date: Sep 13 2013 (one week out) 

Strike: $39.5

Price: $.55

 

TRANSACTION DATE: Thurs9/12

Action: Buy to Close

Exp Date: Sept 13, 2013

Strike: $39.5

Price: $1.52

 

Action Sell to Open

Exp Date: Sept 20, 2013 (one weeks out)

Strike $41

Price: $.53

 

Net debit/contract after commissions: $.1.14