We’ve held off on alerts this week awaiting Fed Chair Powell’s afternoon speech today. The Fed has spoken saying the central bank will raise interest rates by 0.50 in December with continued rate increases to come later to try and tame inflation. The market seems to like that.
Now we can manage some of our Triple Play Income positions. We’ll start with our two healthcare plays and look for the remainder of our open trades with alerts tomorrow and Friday.
Cardinal Health (CAH): 78.39
Cardinal Health doesn’t go ex-dividend until the end of the month but we can roll our covered call out two weeks to pick up more credit.
ACTION: Roll CAH 2 Dec 75 put to a 16 Dec 77.50 put for a net credit of around 0.85
Buy to close CAH 2 Dec 75 put
Sell to open CAH 16 Dec 77.50 put
Gilead Sciences (GILD): 86.30
Gilead stock price is showing no signs of slowing. The ex-dividend date is 12/14 for a 0.73 per share payment. We don’t want to miss this so we will roll GILD out one week and up for more credit and potential assignment.
ACTION: Roll GILD 2 Dec 80 put to the 9 DEC 85 put for a net credit of around 0.60 to 0.65
Buy to close GILD 2 Dec 80 put
Sell to open GILD 9 Dec 85 put
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