Rolled IWM Covered Call Down and Out

he 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

Small cap stocks have stalled recently.  With this minor pull back, CCI rolled the covered call position to harvest a modest approx 0.6%  option premium. 
 

TRANSACTION DATE: Tues. Apr 2

Action: Buy to close

Exp. Date: Apr. 20, 2013

Strike: $99

Price: $0.11 

 

Action: Sell to Open

Exp. Date: May 18 , 2013

Strike: $95

Price: $0.97 

 

Net Credit/Contract after commissions: $0.78