The CPI report this morning sent the futures down before 9:30 AM Eastern only to reverse just after the market opened. Let’s take advantage of that reversal to add to and manage a few of our positions.

TRADE ROLL

CF Industries (CF):  106.83

We continue to ride the commodity inflation wave in fertilizer with CF Industries. The stock has bounced around a lot this past week but is back up 4% today. Let’s stay conservative and roll strike to strike but out 2 weeks this time to collect extra cash.

ACTION:  Roll the CF 14 Oct 100 put out to the 28 Oct 100 put for a net credit of around 1.85 to 1.90 and a 1.9% return.

Buy to close CF 14 Oct 100 put

Sell to open CF 28 Oct 100 put

COVERED CALL

Philip Morris (PM):  86.78

Philip Morris is trading in a tight channel between 83 and 88. The stock price is up about 1% today. PM will be reporting earnings next week (10/20) which gives us some elevated premiums to sell a covered call.

ACTION: Sell to open PM 21 Oct 90 call for a net credit of around 0.70 to 0.72 and an 8% return.

COVERED CALL

Williams & Co. (WMB):  30.28

Williams & Co. stock price is up over 3% today. Let’s get back in with a covered call on this natural gas play.

ACTION:  Sell to open WMB 28 Oct 32 call for a net credit of around 0.20 and an .6% return.