Rolle EEM 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: EEM   
DESCRIPTION: iShares Emerging Market Shares   

TRANSACTION TYPE:    Emerging market stocks have slumped recently, and CCI used the opportunity to harvest some premium and rolled the covered call position out and down as described below.

 

TRANSACTION DATE: Mon. 03/17/14

 

Action: Buy to Close

Exp. Date: Mar. 22,  2014

Strike: $40.50

Price: $.33

 

Action: Sell to Open  

Exp. Date: Apr, 4 2014 (rolled out two weeks) 

Strike: $40.00

Price: $.30

Rolled Emerging Market 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: EEM   
DESCRIPTION: iShares Emerging Market Shares   

TRANSACTION TYPE:    Emerging market stocks went sideways this past week, and CCI used the opportunity to harvest some premium and roll the covered call position up and out and described below.

 

TRANSACTION DATE: Fri. 02/28/14

 

Action: Buy to Close

Exp. Date: Mar. 7,  2014

Strike: $40.5

Price: $.11

 

Action: Sell to Open  

Exp. Date: Mar, 22 2014 (rolled out two weeks) 

Strike: $40.50

Price: $.33

Rolled 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 and Up

Small Cap stocks continued to rise and CCI rolled the  covered call position as described below.

 

TRANSACTION DATE: Feb. 28

Action: Buy to close

Exp. Date: Feb. 28,  2014

Strike: $116

Price: $2.32

 

Action: Sell to Open

Exp. Date: Mar. 14, 2014 (out two weeks)

Strike: $118

Price: $1.58

Rolled Small Cap Covered Call

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 have snapped back recently and CCI was forced to roll the  covered call position as described below.

 

TRANSACTION DATE: Feb. 21

Action: Buy to close

Exp. Date: Feb. 22,  2014

Strike: $112

Price: $3.82

 

Action: Sell to Open

Exp. Date: Feb. 28, 2014 (out one week)

Strike: $116

Price: $0.87

Rolled EEM Covered Call Out and Up..Twice

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 have bounced back somewhat from their lows.  CCI adjusted the covered call position as follows.

 

TRANSACTION DATE: Fri. 02/14/14

 

Action: Buy to Close

Exp. Date: Feb. 14,  2014

Strike: $.39

Price: $.65

 

Action: Sell to Open  

Exp. Date: Feb. 22, 2014 (rolled out one week) 

Strike: $40

Price: $.23

 

Action: Buy to Close

Exp. Date: Feb. 22,  2014

Strike: $.40

Price: $.13

 

Action: Sell to Open  

Exp. Date: Mar. 7, 2014 (rolled out two weeks) 

Strike: $40.50

Price: $.24

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.

UNDERLYING ETF: SPY
DESCRIPTION: SPDR S&P500  

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

Re-established EEM Covered Call

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 continued to fall  making the prior covered call position obsolete quickly. CCI let the last covered call position expired, and  re-established the covered call position. Details below.

TRANSACTION DATE: Tues. 02/04/14

 

Action: Buy to Close

Exp. Date: Jan. 31,  2014

Strike: $41.50

Price: $.00 (expired)

  

Action: Sell to Open  

Exp. Date: Feb. 14, 2014 (rolled out nearly two weeks) 

Strike: $39

Price: $.24

Continuing to Roll C Covered Call

Financial stocks (Specifically both XLF and C which are held in this paired option position) continued at the end of the week.   Hence CCI harvested the option premium gained in the C Covered call and rolled the position as described below.

• Bought back the Feb 28, $52.50 call in C at $.24 (capturing a modest $.18/contract profit)
• Sold the Mar 7 (out an additional week), $51 call in C for a $.51/contract credit.

This position was initiated on  Jan 8, 2013. The performance of various potential holdings as of the time of this trade are shown below:

• The XLF etf has been up with the rest of the market. Just buying and holding the XLF over this period would have returned a very nice 22.8 %.  
• The leverage obtained by instead simply holding the Jan 15 $10 call would have generated an  unrealized, leveraged, capital gain of 58.4%. 
• The leveraged, long/short strategy defined in this thread is up  54.3%.  An outstanding gain with somewhat less risk/leverage than holding a naked  LEAP.

Adjusted Covered Call Position in SPY

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 TYPE:    The market moved down aggressively and the previous covered call lost its effectiveness.  CCI harvested profits and rolled the call down two strikes.  CCI will be looking to roll the call out to March if/when market conditions allow.

TRANSACTION DATE: Fri. 01/31/14

 

Action: Buy to Close

Exp. Date: Feb. 22,  2014

Strike: $185

Price: $.25

 

Action: Sell to Open  

Exp. Date: Feb. 22  2014 (rolled out nearly three weeks) 

Strike: $183

Price: $.56

Boeing: Hitting Crusing Altitude

It has been a long time since CCI discussed its position in Boeing.

As discuss in this three year old article ( http://seekingalpha.com/article/249485-boeing-early-boarding-for-investors-seeking-good-mid-term-prospects) CCI suggested Boeing seemed to be starting the beginning of a cycle of new aircraft production and related products. The article suggested $70 was  a good entry price, with $100 to $120 seeming like a "target" price.

One of the benefits of blogging is it requires an investor to document their rationale for owning a position.  With the start of a new year, and Boeing trading around $140 it was time to re-examine the position.  The following article http://seekingalpha.com/author/common-cents/instablog documents my current thoughts about Boeing. 

From a portfolio position, taking profits from this position that is up 100% is certainly an option.  However, while Boeing's upward run may be over, it seems to me that their backlog of orders  makes it highly likely Boeing won't crash and burn.  IMO, It seems like there is a decent probability that Boeing stock may cruise along at this altitude for awhile.  Based on that forecast CCI is going to treat the Boeing position as a good candidate to write covered calls against.  Specifically, with Boeing trading around $137 and earnings later this week, CCI sold the Feb $145 call against a portion of the portfolio's holding for $1.00.  If the stock surges on earnings news, CCI will likely let the position be trimmed with the assignment of the calls.  If the stock goes sideways or falls from its current levels, the call premium will add a modest .7% return to the existing gains. CCI would then likely re-establish the covered call further out in the future.