Three more positions to manage today.

AbbVie (ABBV):  164.10

AbbVie continues to be one of our top performing stocks, hitting a 52-week high price this week. While much of the biotech market has sold off since December, ABBV keeps chugging along higher and higher. You can see from the chart below the ABBV’s divergence from the market compared to the XBI (smaller cap biotech’s) and the IBB (larger cap biotech’s) … both trading lower in the first quarter than ABBV.

And, AbbVie has been a dividend champion raising its annual dividend each year even with the upward march of the stock price. Yes, there are threats to future growth when Humira comes off patent, earnings reports, and the fact that price is making the stock overvalued. We still like ABBV long-term and will continue to stick with trading it the Triple Play Income portfolio for now.

With AbbVie trading at 164, the end has come with trying to roll our 139 call out for more premium. We’ll take assignment and let the stock be called away this weekend. That’s ok since we bought ABBV stock at 135.87 and we can lock-in a 3.13 profit.

ACTION:  No action. Let ABBV stock be called away.

We’ll look at entering a new put position next week.

Blackstone (BX):

Time to roll our BX 1 Apr 126 call out and up today for a credit. Let’s do it.

ACTION:  Roll the BX 1 Apr 126 call to the 14 Apr 128 call for a net credit of around 0.60 to 0.65

Buy to close BX 1 Apr 126 call

Sell to open BX 14 Apr 128 call

For a net credit of around 0.60 to 0.65

CF Industries (CF): 105.29

As we mentioned in our alert on Tuesday, high fertilizer prices are not going down anytime soon and fertilizer stocks may be overvalued but they are running again. We will keep our duration in the 15-day range and roll our puts up cautiously but still collect a reasonable net credit.

ACTION:  Roll CF 1 Apr 91 put to the 14 Apr 96 put for a net credit of around 1.25 and a 1.3% return.

Buy to close CF 1 Apr 91 put

Sell to open CF 14 Apr 96 put

For a net credit of around 1.25

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