Editor’s Note: We are holding our Triple Play Income 2022 Review/2023 Preview Session tomorrow (2/9) afternoon at 4:00 PM Eastern. You can register for the live webinar session here. We will review our progress from 2022 and take look at market for income stocks in 2023. We hope you can join us, but if not, the session will be recorded and posted on the member site.

TRADE ROLL

Cardinal Health (CAH):  80.00

Cardinal Health stock is holding up well even on down days like today. Our covered call is in the money. We can roll it out and up to give us another 1.00 of capital gains against our entry price of 77.93.

ACTION:  Roll the CAH 10 Feb 79 call to the 24 Feb 80 call for a net credit of around 0.28 to 0.32. (We take in a smaller credit but we give ourselves another 1.00 of capital gains if CAH stock keeps running).

Buy to close CAH 10 Feb 79 call

Sell to open CAH 24 Feb 80 call

TRADE ROLL

Camping World Holdings (CHW):  25.82

Camping World stock is trading in channel between 25 and 27 so we will continue to roll our calls within that range. We can take advantage elevated premiums due to their earnings report coming out on 2/21 and roll our call out one week for a rich premium.

ACTION:  Roll the CHW 10 Feb 26 call to the 17 Feb 26 call for a net credit of around 0.34 to 0.38 and a 1.4% return.

Buy to close CHW 10 Feb 26 call

Sell to open CHW 17 Feb 26 call

COVERED CALL

IBM (IBM):  136.05

We own IBM stock uncovered and it goes ex-dividend tomorrow … earning a 1.65 per share dividend to be paid on 3/10. The stock is likely to trade lower tomorrow, and that will allow us to sell a covered call 3 points out of the money and collect a smaller premium without getting run over right to the upside.

ACTION:  Sell to open IBM 24 Feb 139 call for a net credit of around 0.50 to 0.55 and a 0.3% return.