We have a number of Triple Play Income positions with calls expiring today. We will break this into two alerts and get most of our positions rolled today.
IBM (IBM): 129.58
IBM had a good Q3 earnings report earlier this week. They beat EPS estimates by a penny but revenue was up 6.4% year over year which gave the stock a 6% boost the next day. The stock has traded back up to the 130 range and we can roll our short calls out today.
ACTION: Roll the IBM 21 Oct 134 call to the IBM 4 Nov 13 call for a net credit of around 0.98 to 1.00 and a 0.8% return
BTC the IBM 21 Oct 134 call
STO the IBM 4 Nov 133 call
Kraft Heinz (KHC): 35.15
Kraft stock price has quietly put in a bottom for now and is gradually trading higher. This is the stronger food producer play in our portfolio and we can continue to manage this position for cash profits going forward. The company does report earnings next Wednesday (10/26) which has resulted in elevated premiums but we can trade ahead of that and raise our strikes as well.
ACTION: Roll the KHC 21 Oct 35.50 call to the 4 Nov 36.50 call for a net credit of around 0.50 and a 1.3% return
Buy to close the KHC 21 Oct 35.50 call
Sell to open the KHC 4 Nov 36.50 call
ONEOK, Inc. (OKE): 55.70
ONEOK stock price has taken a hit over the last several weeks. As we head closer to the winter months, we would expect natural gas prices to rise and natural gas stocks to benefit. Let’s roll our two positions out to next month.
ACTION 1: Roll the OKE 21 Oct 60 call to the 18 Nov 57.50 call for a net credit of around 1.15 to 1.20 and a 2% return
Buy to close the OKE 21 Oct 60 call
Sell to open the OKE 18 Nov 57.50 call
ACTION 2: Roll the OKE 21 Oct 67.50 call to the 18 Nov 60 call for a net credit of around 0.50
Buy to close the OKE 21 Oct 67.50 call
Sell to open the OKE 18 Nov 60 call
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