Here is an update on two of our positions with no action to take this week.


IBM (IBM): 148.56


IBM stock price has gone straight up ever since they beat earnings on 10/19. We were called out of the stock last week at a nice profit and it’s time to get back in by selling a put … but the stock looks way over-bought.


Let’s be patient and give it a few days to see if the price retraces and then will re-enter IBM with an out of the money put.




Philip Morris (PM): 97.04


Philip Morris stock continues to trade on this very weird cycle.


When there is good news about the company and the market … the stock trades lower. A miss on the last earnings report … the stock trades higher. Some of that is market driven but PM used to be a contrarian defensive stock that went higher when stocks sell-off and lower or flat when the market is running.


Anyway, we can’t manage our 25 Nov calls for anywhere near a credit. We will let our 25 Nov 91 call be assigned this weekend and we will look at re-enter a PM position by selling puts next week.



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