What a week in the stock market. After selling off hard last Friday due to hawkish Fed talk, the market tried to rally every couple of days this week but kept sliding lower. Today is another good was another case of the same: A strong jobs report number this morning, the market opened higher and now has given back most of those gains and a little more.

We are keeping an eye on our portfolio companies … looking for those that may be tempted to pull back on their dividends if they expect a bleaker economic outlook. And we will continue to extend our trade durations out 14 to 21 days to be able to manage the volatility in our positions if the market moves against our stocks.

Today we only have two positions to manage before heading into the long Labor Day weekend. Remember, the US stock market is closed on Monday. 

Enjoy the break.

TRADE ROLL

Cardinal Health (CAH):  71.45

Cardinal Health stock price continues to climb slowly and steadily. We still have until the end of the month before it goes ex-dividend and we need to own the stock. Let’s keep rolling and selling puts right now.

ACTION: Roll the CAH 2 Sep 67 put to the 16 Sep 70 put for a net credit of around 0.75 to 0.78 and a 1.1% return

Buy to close CAH 2 Sep 67 put

Sell to open CAH 16 Sep 70 put

Note: If you are new to Triple Play Income, you can simply sell the CAH 16 Sep 70 put.

TRADE ROLL

Gilead Sciences (GILD):  64.00

Gilead stock price has held its ground. We have an ex-dividend date coming up on 9/14 with a $0.73 dividend so we want to stay in the stock before then. Unfortunately, we can’t roll our call position out and high enough to collect a net credit, and don’t want to cut it too close to avoid getting called out before the ex-dividend date. We will roll it one week strike to strike and collect a small profit … we may have the stock called away next Friday but we have time to buy it back before 9/14.

ACTION:  Roll the GILD 2 Sep 63 call to the 9 Sep 63 call for a net credit of around 0.37 to 0.40 and a .6% return.

Buy to close GILD 2 Sep 63 call

Sell to open GILD 9 Sep 63 call

If you do not currently hold GILD stock, you can buy it at market but sell the GILD 9 Sep 64 call for around 0.75 to 0.82.