TRADE ROLL

Gilead Sciences (GILD):  83.35

Gilead Sciences reports earnings next Thursday (2/2). Not much news or excitement about the coming report so it could mean that earnings or revenue could be off. However, Gilead missed on earnings last quarter and the stock price traded higher. 

Our 27 Jan 85 put is in the money. We will roll it out and down to take advantage of the elevated premiums around earnings.

ACTION:  Roll the GILD 27 Jan 85 put to the 10 Feb 84 put for a net credit of around 0.84 to 0.88 and 1% return

Buy to close GILD 27 Jan 85 put

Sell to open GILD 10 Feb 84 put

BUY/WRITE

ONEOK, Inc. (OKE):  69.31

ONEOK goes ex-dividend tomorrow (1/27). Let’s get back into this position with a buy-write. Buy the stock and sell the 17 Feb 70 call.

ACTION:  Buy OKE stock at market and sell the OKE 17 Feb 70 call for a net credit of around 0.90 for a 1.3% return.