Cyprus "Events" = Time for TLT 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:  TLT   

DESCRIPTION: iShares Barclays 20+ Year Treasury Bond

TRANSACTION TYPE: Established Apr $119 Covered Call

TRANSACTION RATIONALE:  As discussed  here another covered call candidate is the long term bond ETF.   With the Cyprus banking system making the US banking systems look good, and EU dysfunctional bureaucrats making US bureaucrats look like the picture of rationale, stability the US bond market is getting a "safe haven bounce".   CCI used this situation to re-established a covered call position of this bond etf as shown below. 

TRANSACTION DATE: Tues.  Mar. 19, 2013

Action: Sell to Open

Exp. Date: Apr. 20, 2013

Strike: $119

Price: $0.81

 

Net credit: $0.76/contract after commission