With the Fed rate hike as expected and the market trading lower, we have a number of positions to manage and a few that we will give another day before we act. Let’s go ahead and manage 4 of our Friday expirations that we want to roll today.
Camping World Holdings (CWH): 25.83
Camping World earnings missed EPS by $0.22 while revenues of $1.9 billion beat by $100m. New vehicle revenue was down while used RV sales were up … no surprise given the demand from people wanting to get out, travel, and camp after being couped up for 2 years with the pandemic.
The stock price traded down about 9% … let the dust settle from this report and we will roll our calls out 3 weeks for a larger cash premium.
ACTION: Roll the CWH 4 Nov 29 call to the 25 Nov 28 call for a net credit of around 0.45 and a 1.6% return
Buy to close CWH 4 Nov 29 call
Sell to open CWH 25 Nov 28 call
Kraft Heinz (KHC): 38.01
Kraft Heinz stock price is sliding back again after trading higher for the last two weeks. Not a lot of premium to collect from out of the money strikes and we don’t want to pay a debit to roll our calls higher. The ex-dividend date is 11/23. Let’s roll it out 2 weeks at the same strike.
ACTION: Roll the KHC 4 Nov 36.50 call to the 18 Nov 36.50 call for a net credit of around 0.30 and a .8% return
Buy to close KHC 4 Nov 36.50 call
Sell to open KHC 18 Nov 36.50 call
Philip Morris (PM): 88.74
No real news coming out of Philip Morris. The stock is hovering in the high mid-to-high 80s. We can roll out 3 weeks and up 1 strike for a solid premium.
ACTION: Roll the PM 4 Nov 90 call to the 25 Nov 91 call for a net credit of around 0.90 to 0.95 and a 1% return
Buy to close PM 4 Nov 90 call
Sell to open PM 25 Nov 91 call
Williams Companies (WMB): 33.16
Williams’ stock price is running along with the rest of the energy stocks (even though oil was down again today). Not sure this trend will continue but we will need to roll our 4 Nov 32 call out two weeks.
ACTION: Roll the WMB 4 Nov 32 call to the 18 Nov 32 call for a net credit of around 0.36 to 0.38 and a 1.1% return
Buy to close WMB 4 Nov 32 call
Sell to open WMB 18 Nov 32 call
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