Rolled EEM Covered Call Out and Dow

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: Roll - Emerging market stocks fell this week.  Hence, the current covered call was essentially worthless and it was time to roll out and down the EEM covered call position as described below.

TRANSACTION DATE: Fri. 4/5/13

Action: Buy to Close 

Exp Date: April 12, 2013

Strike: $43.00 

Price: $.02

 

Action: Sell to Open  

Exp. Date: Apr. 26, 2013 (two weeks out) 

Strike: $42.00 

Price: $.28

 

Net Credit/contract: $.25 after commissions