With the market down but calmer today, we can manage a couple of positions this morning.

TRADE ROLL

Dow Inc. (DOW):  51.06

The railroad strike settlement has helped a lot of chemical stocks avoid a sell-off including Dow. While Dow hasn’t been the same income star it was in 2021 (when it was up 56% between dividends and premium), we will still end up with around an 18% return in 2022 at the same time the S&P has been down around 18% year-to-date.

Dow stock price is holding in a range of 50 to 52 range and we can roll our call out and up for a nice credit.

ACTION:  Roll the DOW 9 Dec 51 call to the DOW 16 Dec 51 call for a net credit of around 0.60 to 0.65 and a 1.2% return

Buy to close DOW 9 Dec 51 call

Sell to open DOW 16 Dec 51 call

TRADE ROLL

Kraft Heinz (KHC):  39.53

Food and beverage companies are still being challenged this year by inflation but Kraft Heinz is emerging in a stronger position going into 2023. Management has come through since the merger by reducing debt and improving their overall financial position compared to 24 months ago. We will continue trading KHC into 2023.

Let’s roll our call out one week for a solid credit.

ACTION:  Roll the KHC 9 Dec 39.50 call to the KHC 16 Dec 39.50 call for a net credit of around 0.34 to 0.36 and a 0.8% return

Buy to close KHC 9 Dec 39.50 call

Sell to open KHC 16 Dec 39.50 call