The market was giving us some hope this week that we could sustain a few days of higher prices and add more covered calls. However, today we are giving some of that back. We can manage a few of our covered call positions but will be patient with a couple of other our uncovered positions.

We will look at next week to begin covering more of our positions as we get into earnings season where we can collect larger premiums. Here are the actions for today.

 AbbVie (ABBV):  143.92

AbbVie goes ex-dividend next Thursday (10/13). Originally when the stock price popped earlier in the week, we were hoping to roll the calls out higher and collect a decent premium. ABBV gave most of those gains back and we are better now to sit on the stock, earn the dividend Thursday, and then sell a covered call at that time.

ACTION:  No Action

TRADE ROLL

CF Industries (CF):  106.21

CF Industries got an upgrade this week from RBC capital based on the improved outlook for fertilizer production. The stock popped from 94 to 105 over the first few days of this week along with the stock market. It’s running again today.

Let’s continue to be short-term and conservative with our CF trading strategy and roll our puts out one week.

ACTION:  Roll CF 7 Oct 100 put to the CF 14 Oct 100 put for a net credit of around 1.05 to 1.10 and a 1% return.

Buy to close the CF 7 Oct 100 put

Sell to open the CF 14 Oct 100 put

TRADE ROLL

Dow Inc. (DOW):  45.57

DOW stock price seems to have stabilized around 45 and we have some support for the stock there as well. Let’s roll our call out 3 weeks to take advantage of earnings volatility creating decent premiums for our calls.

ACTION:  Roll DOW 7 Oct 50 call to the DOW 28 Oct 49 call for a net credit of around 0.48 to 0.50 and a 1% return

Buy to close the DOW 7 Oct 50 call

Sell to open the DOW 28 Oct 49 call