TRADE ROLL

CF Industries (CF):  101.44

CF Industries stock continues to give us an up-and-down ride. The short-term momentum may be slowing so let’s roll our put out two weeks and roll it down 2 strikes and still collect a rich credit.

ACTION:  Roll CF 18 Nov 101 put to the 2 Dec 99 put for a net credit of around 2.25 to 2.30 and a 2.3% return

Buy to close CF 18 Nov 101 put

Sell to open CF 2 Dec 99 put

IBM (IBM):  147.35

IBM stock price has run up on essentially no news but lots of market momentum.

We can’t roll our calls up and out for a premium. But that’s ok. We entered our position at 138 with a 0.65 credit and moved our strikes up to the 141. So, we will let our position be called out and keep the 0.65 plus 3.00 of capital gains from 138 to 141 for a $3.65 profit. We’ll take that.

ACTION:  NO ACTION. Allow IBM stock to be called away.

Kraft Heinz (KHC):  37.83

KHC goes ex-dividend on Wednesday (11/23) paying 0.40. There is no premium to collect by rolling our call out and up. Let the stock be called away and we will buy back the stock on Monday to collect the dividend.

ACTION:  NO ACTION. Allow KHC stock to be called away.

TRADE ROLL

ONEOK, Inc. (OKE):  63.44

We continue to chase OKE stock price with our calls as natural gas stock prices have bounced around throughout the fall. With only monthly options, it limits our ability to be flexible and roll up and collect a credit. Let’s roll our positions out strike to strike to collect a reasonable premium.

ACTION 1:  Roll the OKE 18 Nov 60 call to the OKE 16 Dec 60 call for a net credit of around 1.05 and a 1.7% return

Buy to close OKE 18 Nov 60 call

Sell to open OKE 16 Dec 60 call

ACTION 2: (For those members who hold two call positions at the different strikes):  Roll the OKE 18 Nov 57.50 call to the OKE 16 Dec 57.50 call for a net credit of around 0.60 to 0.65 and a 1.1% return.

Buy to close the 18 Nov 57.50 call

Sell to open the 16 Dec 57.50 call

We have a short week next week with the stock market closed on Thursday for Thanksgiving and the market only open for a half day on Black Friday. We will manage all of our 25 Nov expirations by Tuesday of next week.

Have a good weekend.