We have several call and put positions in our portfolio that need to be rolled this week. There was a fair amount of theta decay left in those positions, so we held off until today. However, with the market trading lower the past two days, we may need to sit on a couple of these positions a bit longer.

Unless AbbVie (ABBV), Dow (DOW) and Rio Tinto (RIO) trade higher, we will let our short options expire worthless or let our shares be called away. Look for separate alerts tomorrow and/or Friday on these stocks.

Here are the positions we can manage today:

TRADE ROLL

Kraft Heinz (KHC): 39.86

Good news from Kraft today. The food company beat on earnings with Q4 adjusted EPS of $0.85 (beating estimates by $0.085) and revenue was up 10% year over year to $7.38 billion. The company projected organic sales growth of 4% to 6% in 2023… another good sign especially if Kraft can continue to translate sales growth into increased profits.

The stock goes ex-dividend on March 9, with no change in the quarterly payment of $0.40.

Let’s roll our call out two weeks and down one strike.

ACTION: Roll KHC 17 Feb 41 call to the KHC 3 Mar 40.50 call for a net credit of around 0.35 to 0.40 and a 0.9% return

Buy to close KHC 17 Feb 41 call

Sell to open KHC 3 Mar 40.50 call

TRADE ROLL

Williams Companies (WMB):  31.96

On a day when energy stocks are getting hammered on lower oil and gas prices, Williams is trading flat. We have earnings coming up next week (2/20) so premiums are somewhat elevated.

Let’s roll our call out two weeks and down one strike.

ACTION: Roll the WMB 17 Feb 33 call to the WMB 3 Mar 32 call for a net credit of around 0.60 and a 1.9% return

Buy to close WMB 17 Feb 33 call

Sell to open WMB 3 Mar 32 call