The current run-up in the market is challenging several of our open call positions. However, the market is starting to look overbought with a number of stocks running up against technical resistance. We are getting a bit of a pullback this morning and we’ll look at rolling our Friday expiration call positions over the next few days.

Let’s roll two of our put positions today.

TRADE ROLL

Cardinal Health (CAH):  75.05

Cardinal Health stock price has been on a steady rise peaking last week at over $81 per share and even though the price has re-traced, it’s up again today.

The ex-dividend date isn’t until the end of December so we have plenty of time to keep rolling our puts.

ACTION: Roll CAH 18 Nov 75 put to the 2 Dec 75 put for a net credit of around 0.80 to 0.85 and a 1% return

Buy to close CAH 18 Nov 75 put

Sell to open CAH 2 Dec 75 put

TRADE ROLL

Gilead Sciences (GILD):  82.75

As we mentioned before, “Gilead the growth stock” is back for now. Our 11 Nov 78 put is only worth a few cents. Gilead goes ex-dividend on 12/14 so we have a few more weeks of rolling our puts before we need to buy the stock.

ACTION:  Roll the GILD 18 Nov 78 put to the GILD 2 Dec 80 put for a net credit of around 0.60 to 0.65 and a 0.8% return

Buy to close GILD 18 Nov 78 put

Sell to open CAH 2 Dec 80 put