Adjusting May Covered Call on Small Caps (IWM)

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 Down

A volatile week in the stock market created the environment to take some profits and adjust the covered call on small cap stocks as described below.
 

TRANSACTION DATE: Wed. Apr17 

Action: Buy to close

Exp. Date: May 18, 2013

Strike: $95

Price: $0.25

 

Action: Sell to Open

Exp. Date: May 18 , 2013

Strike: $92

Price: $0.99

 

Net Credit/Contract after commissions: $0.66