Roll IWM Covered Calls Out and Up

The Index Covered Call (aka: ICC) trading plan 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

The small cap index continues to move higher.  With one week to go until expiration it was time to take the loss in the covered call contract, preserve some of the gain in the etf and  and roll out to another strike.

 

TRANSACTION DATE: Fri  1/11/13

Action: Buy to close

Exp. Date: Jan. 19, 2013

Strike: $84

Price: $3.08

 

Action: Sell to Open

Exp. Date: Feb. 16, 2013

Strike: $88

Price: $1.19

 

Net Cost/Contract after commissions: $1.98