Fed and CPI news event weeks can be difficult for communicating trading decisions … usually volatile actions that can send the market higher or lower quickly. This week is no exception as stocks fall again on future Fed rate hike worries.

With the market down, we can roll several of our call positions today and will address our sold put options tomorrow.

TRADE ROLL

Dow Inc. (DOW):  49.65

Dow stock price is holding up through the market turmoil this week. We can roll our call out two weeks for a good credit.

ACTION:  Roll the DOW 16 Dec 51 call to the DOW 30 Dec 51 call for a net credit of around 0.45 to 0.50 and a 0.9% return

Buy to close DOW 16 Dec 51 call

Sell to open DOW 30 Dec 51 call

TRADE ROLL

Kraft Heinz (KHC):  39.60

Kraft stock price has been on a steady climb higher even as other food stocks have been flat or down. We can roll our call out and up for a credit and a 0.50 capital gain.

ACTION:  Roll the KHC 16 Dec 39.50 call to the KHC 6 Jan (23) 40 call for a net credit of around 0.30 to 0.32

Buy to close KHC 16 Dec 39.50 call

Sell to open KHC 6 Jan (23) 40 call

TRADE ROLL

ONEOK, Inc. (OKE): 64.71

Natural gas stocks are bouncing back after a very slow fall. We’ve had trouble staying ahead of the stock price with our strikes since October. All we can do right now is roll the calls out another month and collect more premium and see if OKE retraces over the next few weeks.

ACTION 1:  Roll the OKE 16 Dec 60 call to the 20 Jan (23) 60 call for a net credit of around 1.00 to 1.05 to 1.10 and a 1.4% return

Buy to close OKE 16 Dec 60 call

Sell to open OKE 20 Jan (23) 60 call

If you took TWO OKE positions:

ACTION 2: Roll the OKE 16 Dec 57.50 call to the 20 Jan (23) 57.50 call for a net credit of around net credit of around 0.70 to 0.75

Buy to close OKE 16 Dec 57.50 call

Sell to open OKE 20 Jan (23) 57.50 call