Friday, February 7, 2014

Rolled SPY Covered Call Out and 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.


TRANSACTION TYPE:    The recently adjusted Feb SPY covered call continued to erode with time doing its job of providing a small hedge for the held underlying.  The option had decayed to a point where CCI rolled out the call to the next month as described below.

TRANSACTION DATE: Thurs. 02/06/14
Action: Buy to Close
Exp. Date: Feb. 22,  2014
Strike: $183
Price: $.18
Action: Sell to Open  
Exp. Date: Feb. 22  2014 (rolled out until next month) 
Strike: $182
Price: $ 1.12

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