Rolled Small Cap (IWM) Covered Call Out and Down

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 Out and Down

Small Cap stocks continued to take a pounding recently.  CCI used the opportunity to roll/reposition the covered call position to take some of the hedging profits and realign the call to a more practical position.

 

TRANSACTION DATE: Jan. 27

Action: Buy to close

Exp. Date: Feb. 7,  2014

Strike: $117

Price: $0.16

 

Action: Sell to Open

Exp. Date: Feb. 14, 2014 (out one week)

Strike: $115

Price: $0.70