Rolled Covered Call in C to Refresh the XLF Hedge

Earlier in the week C reported earnings and disappointed the market.  Further, the market and financial stocks (Specifically both XLF and C which are held in this paired option position) fell today.  This drop in price exhausted most of the hedge the short call was providing to this position.  Hence CCI harvested the option premium and rolled the position as described below.

• Bought back the Feb 22, $55 call in C at $.11 (capturing a $.93/contract profit)
• Sold the Feb 28 (out an additional week), $52.50 call in C for a $.42/contract credit.

This position was initiated on  Jan 8, 2013. The performance of various potential holdings as of the time of this trade are shown below:

• The XLF etf has been up with the rest of the market. Just buying and holding the XLF over this period would have returned a very nice 25 %.  Down about 4% since the last post. 
• The leverage obtained by instead simply holding the Jan 15 $10 call would have generated an  unrealized, leveraged, capital gain of 56.6%.  This is down over 10% since the last post
• The leveraged, long/short strategy defined in this thread is up 52.4%.  An outstanding gain with somewhat less risk/leverage than holding a naked  LEAP. Only down 3.9% since the last post.