Triple Play Income Alert: CF, GILD, VALE

This market is not giving us anything to trade or manage as we head into the end of the week. We have several positions with options expiring and a stock we want to take assignment of.

The best thing we can do right now is be patient and let the selling pressure ease off before we sell calls on our stocks. Below is an update on a few of our open positions.

CF Industries (CF): 78.96

CF has sold off again with the market and is now trading below $80. We will let our 10 Mar 90 call expire worthless. We will need to be patient with CF until we get three or more consecutive up-days in the stock before we sell a covered call.

ACTION: No Action. Allow the CF 10 Mar 90 call to expire worthless.

Gilead Sciences (GILD): 79.42

We were assigned the GILD 10 Mar 84 put yesterday in our master portfolio, which is what we wanted to happen, as Gilead’s ex-dividend date is coming up on Tuesday, March 14.

If you were not assigned GILD, let the 10 Mar 84 put assign this weekend.

ACTION: No Action. Allow GILD 10 Mar 84 put to assign.

New Members: You can buy GILD at market today or by Monday at the latest ahead of Tuesday’s ex-dividend date.

Vale S.A. (VALE): 16.19

Vale finally released their ex-dividend date, which is Tuesday, March 14. Our 17 Mar 17 put can probably be closed at breakeven or a small loss. We will close it Monday and buy the stock. The 8% annual dividend is worth collecting during this challenging time for stock appreciation.

ACTION: No Action. Look for an alert on Monday to close VALE 17 Mar 17 put.