Thank you to those who were able to attend our Triple Play Income 2022 Review-2023 Preview session yesterday. There were several good ideas for further enhancing the returns in our program that came out of yesterday’s session. The recording of the review session is now posted on the member website.

Here are the final trades we need to manage before the weekend.

TRADE ROLL

CF Industries (CF):  90.92

CF Industries took us by surprise trading up 5% today on no news. CF goes ex-dividend on Tuesday, so let’s roll our call out 2 weeks and up to 91 and hopefully avoid being called out of the stock early.

ACTION:  Roll the CF 10 Feb 89 call to the 24 Feb 91 call for a net credit of around 1.00 to 1.10 and a 1.1% return

Buy to close CF 10 Feb 89 call

Sell to open CF 24 Feb 91 call

TRADE ROLL

Philip Morris (PM):  101.83

Philip Morris continues to chug along as one of our core value stocks. Yesterday, PM beat Q4 earnings estimates with EPS of $1.39 …+0.11 and revenue of $8.15B beating by $610M. The company did adjust its 2023 guidance down from $6.25 to $6.02, which may be why the stock is trading slightly lower today. Overall, another typical solid earnings report from the company.

Let’s roll our short put out two weeks strike-to-strike.

ACTION:  Roll the PM 10 Feb 100 put to the 24 Feb 100 put for a net credit of around 0.70 to 0.75

Buy to close PM 10 Feb 100 put

Sell to open PM 24 Feb 100 put

TRADE ROLL

Vale S.A. (VALE):  16.58

Vale reports earnings next week (2/16) and there is little visibility on how the numbers will come in or the market will react. This is a case where we can extend our expiration date out to the March monthly, lower our strike, and collect a solid dividend … getting us past any earnings volatility.

ACTION:  Roll the VALE 10 Feb 17.50 put to the 17 Mar 17 put for a net credit of around 0.30 to 0.32 and a 2% return.

Buy to close VALE 10 Feb 17.50 put

Sell to open VALE 24 Feb 17 put