Earnings reports will continue for our Triple Play Income stocks over the next couple of weeks. We can use these to capture elevated premiums on some of our current call positions. Let’s get started this week with these first 2 positions.

TRADE ROLL

AbbVie Inc. (ABBV):  148.96

After 2 weeks of selling, ABBV stock may have found support around the 149 to 150 range. ABBV reports earnings on 2/9 and we can roll our calls out to the monthly option and down a couple of points … above our 156.96 entry price.

ACTION:  Roll the ABBV 27 Jan 160 call to the ABBV 17 Feb 157.50 call for a net credit of around 1.25 to 1.30 and a 0.8% return

Buy to close the ABBV 27 Jan 160 call 

Sell to open the ABBV 17 Feb 157.50 call

COVERED CALL

Kraft Heinz (KHC):  40.17

We were assigned KHC shares over the weekend. With earnings on 2/15 we can sell the February monthly option at roughly our entry price and collect a good premium.

ACTION:  Sell to open KHC 17 Feb 41 call for a net credit of around 0.75 to 0.80 and a 1.8% return.