The Fed raised rates, stocks sold off and then bounced back and are flat here at the end of the week. We will take this chance to re-enter two of our stronger healthcare positions selling puts and let one of our positions be called away.

CF Industries (CF):  105.54

This shows you the impact of “commodity shortages” in a period of inflation. CF Industries reported earnings after the market close on Wednesday and missed EPS projections of $2.18 by $1.32 … a big miss and a smaller miss on revenue of $70M. The stock sold off in the after-hours and at the open yesterday was down.

But later in the morning the stock took off and finished higher and is up again today despite the earnings miss. Our 11 Nov 101 put is still out of the money and we should be on track to roll our puts out next week for another big credit.

ACTION:  No Action

IBM (IBM):  135.59

IBM stock price has bounced up and down over the last week … but ultimately running past our 4 Nov 133 call expiring today. With ex-dividend date next Wednesday (11/9) and a 1.65 per share dividend, we’ll take assignment and let our IBM stock be called away.

We will buy the stock back either Monday or Tuesday and sell another call.

ACTION: No Action. Allow 4 Nov 133 call to expire and your IBM stock be called away. We will buy the stock next week.

COVERED CALL

Cardinal Health (CAH):  77.93

Cardinal Health came in with a solid earnings report this morning at $1.20 per share and 0.23 better than consensus and revenues of $49.6 billion up 12.8% year-over-year. They guided to expected earnings for the year.

The stock price responded and is up almost 3% today. The stock looks like it has some room to run so let’s sell put option to get back in.

ACTION:  Sell to open CAH 18 Nov 75 put for a net credit of around 0.60 to 0.65 and a 0.8% return.

COVERED CALL

Gilead Sciences (GILD):  80.13

Gilead stock price is holding up after its run up from earnings last week and sell a put option today.

ACTION: Sell to open GILD 18 Nov 78 put for a net credit of around 0.72 and 0.9% return.