We have several more positions to manage before the weekend. 

TRADE ROLL

Cardinal Health (CAH):  78.73

It was a banner week for Cardinal Health. 

Cardinal Health received several analyst upgrades over this past week and then yesterday reported better-than-expected second quarter earnings and raised 2023 guidance … all good signs. Cardinal revenue rose 13.2% year-on-year to $51.47B beating estimates by 1.44B. Q2 EPS of $1.32 beat by $0.18. Management continues to deliver increasing profits in a highly competitive healthcare market.

The stock is trading up 3% and near our call strike. We can roll it out one week and collect big credit.

ACTION:  Roll the CAH 3 Feb 79 call to the 10 Feb 79 call for a net credit of around 0.95 to 1.00

Buy to close CAH 3 Feb 79 call

Sell to close CAH 10 Feb 79 call

TAKE ASSIGNMENT

IBM (IBM): 135.72

This seems to happen every year around this time. IBM stock price is over enthusiastically bid higher to the 140s after a solid earnings report and then then stock retraces back to the mid 130s. 

Our Master Portfolio took assignment on Wednesday and our 3 Feb 142 put is way in the money. If you haven’t been assigned, take assignment this weekend. IBM goes ex-dividend next Thursday (2/9) and we will want to earn the 1.65 dividend.

ACTION:  No Action. Take assignment of IBM stock over the weekend.

TRADE ROLL

Vale S.A (VALE): 17.36

Our VALE 3 Feb 17.50 put is slightly in the money. Let’s roll it out one week for a solid credit.

ACTION:  Roll VALE 3 Feb 17.50 put to the VALE 10 Feb 17.50 put for a net credit of around 0.18 to 0.22

Buy to close VALE 3 Feb 17.50 put

Sell to open VALE 10 Feb 17.50 put