IE/IWM -- Income for Week 13, Writeoff of Group B shares

Because of the run-up in price recently, I decided to close out the group B shares. That meant I needed to generate enough income in week 13 to cover the capital loss on the B shares, caused by writing them down from $117.06 to $113.43. 

I rolled out the remaining 17 calls 6 weeks to 8/16 2014 to generate the income for week 13 and to cover the write-off costs. I'm ending up a bit short of the $500 goal for the week, but since other weeks were well over $500, I'm not going to worry too much about it.

Date	Group	Description	Result	Total	Shares	Price	Comm	Fees	Week	Income	Week2
2014-05-27	ACE	STO 17 IWM 8/16 2014 $117 Call	Open	$2,540.83	17	$1.51	$25.50	$0.67	13	$2,540.83	--
2014-05-27	ACE	BTC 17 IWM 6/6 2014 $117 Call	--	-$298.11	17	$0.16	$25.50	$0.61	13	-$298.11	--
2014-05-27	B	BTC 5 IWM 6/6 2014 $117 Call	--	-$105.13	5	$0.18	$14.95	$0.18	13	-$105.13	--
2014-05-27	B	Capital Loss on 500 shares	--	-$1,834.16	500	--	--	--	13	-$1,834.16	--
2014-05-27	B	Sell 500 Shares IWM	Closed	$56,704.79	500	$113.43	$8.95	$1.26	--	--	--

IE/IWM -- Calls exercised

The buy/write order for group "F" was assigned this week. Since I'm ahead on the weekly income coverage, there was no need to take any action this week.

Date	Group	Description	Result	Total	Shares	Price	Comm	Fees	Week	Income	Week2
2014-05-23	F	Assigned 400 Shares IWM	Closed	$43,985.05	400	$110.00	$14.95	$0.00	--	--	--
2014-05-09	F	STO 4 IWM 5/23 2014 $110 Call	Called	$556.36	4	$1.41	$7.48	$0.16	11	$556.36	--
2014-04-30	F	Buy 400 Shares IWM	Assigned	-$44,060.95	400	$110.13	$8.95	$0.00	7	--	10

IE/IWM -- How to roll down the cost basis?

I currently have 2200 shares with a cost basis of $117 per share, with IWM currently at about $112 a share.

Reading a message on another board, a question struck me -- how could I go about adjusting that cost basis downwards, keeping the $500 per week income goal, but not giving up any capital?

I fooled around with a workbook, using my add-in, and came up with the table below:

Shares	Basis	Strike	Needed	Per Share	Expiry	Bid	WriteDown	Income
2200	$117	$117	$500	$0.23	2014-06-21	$0.25	$0.00	$550.00
2200	$117	$116	$2,700	$1.23	2014-08-16	$1.46	$2,200.00	$1,012.00
2200	$117	$115	$4,900	$2.23	2014-09-20	$2.56	$4,400.00	$1,232.00
2200	$117	$114	$7,100	$3.23	2014-11-22	$4.08	$6,600.00	$2,376.00
2200	$117	$113	$9,300	$4.23	2014-11-22	$4.57	$8,800.00	$1,254.00
2200	$117	$112	$11,500	$5.23	2014-12-20	$5.57	$11,000.00	$1,254.00

Where:

• "Shares" = My current number of shares.
• "Basis" = My current cost basis.
• "Strike" = The strike price at which I want my new cost basis to be.
• "Needed" = How much is needed to generate a week's worth of income PLUS writing down the cost basis to the strike price, of the currently held shares.
• "Per Share" = What "Needed" comes down to on a per share basis.
• "Expiry" = The expiration date I'd have to use for the given strike price to generate the "Needed" amount.
• "Bid" = The bid price at the given strike price and expiration date. This should always be higher than the "Per Share" amount, because I'm actually using the "Per Share" price to look up the necessary call contract I need to use.
• "WriteDown" = How much of this call sale would go to writing down the cost basis of the currently held shares.
• "Income" = What's left over for income on the call sale after removing the write down amount.

Note that in many cases, the transaction would account for multiple weeks of income.

IE/IWM -- Income for Week 12

With the dip in price, I initiated a new position to earn the income for week 12:

Date	Group	Description	Result	Total	Shares	Price	Comm	Fees	Week	Income	Week2
2014-05-15	G	STO 3 IWM 5/30 2014 $108 Call	Open	$506.92	3	$1.74	$14.95	$0.13	12	$506.92	--
2014-05-15	G	Buy 300 Shares IWM	Open	-$32,420.95	300	$108.04	$8.95	$0.00	9	--	11

IE/IWM -- Income for Week 11

I rolled the IWM 5/9 2014 $110 Call out two weeks to 5/23 to earn the income for week 11:

Date	Group	Description	Result	Total	Shares	Price	Comm	Fees	Week	Income	Week2
2014-05-09	F	STO 4 IWM 5/23 2014 $110 Call	Open	$556.36	4	$1.41	$7.48	$0.16	11	$556.36	--
2014-05-09	F	BTC 4 IWM 5/9 2014 $110 Call	--	-$27.61	4	$0.05	$7.47	$0.14	9	-$27.61	--
2014-04-30	F	STO 4 IWM 5/9 2014 $110 Call	Rolled	$668.89	4	$1.71	$14.95	$0.16	9	$668.89	--

IE/IWM -- Income for Week 10

Another $0.02 limit order triggered, so I had 2200 shares with a cost basis of $116.88 to deal with. I sold calls against them to create income for week 10:

Date	Group	Description	Result	Total	Shares	Price	Comm	Fees	Week	Income	Week2
2014-05-05	ABCE	STO 22 IWM 6/6 2014 $117 Call	Open	$780.20	22	$0.37	$33.00	$0.80	10	$780.20	--
2014-05-05	BC	BTC 10 IWM 5/9 2014 $116 Call	--	-$25.23	10	$0.02	$4.95	$0.28	6	-$25.23	--