We have several positions with call options expiring tomorrow that we can manage today.

TRADE ROLL
AbbVie (ABBV): 155.64

So far in 2023, AbbVie stock has held its own, down less than 3%, in the face of an expected sell-off after its blockbuster autoimmune treatment Humira went generic at the beginning of the year. The company continues to fill its pharma pipeline with new drugs while experiencing success with Skyrizi and Rinvoq.

Even better, AbbVie continues to generate plenty of free cash flow to cover its $1.48 per-share quarterly dividend, which it has increased for nine straight years. AbbVie goes ex-dividend on April 13, so we can roll our call out another couple of weeks at the same strike.

ACTION: Roll the ABBV 17 Mar 157.50 call to the 31 Mar 157.50 call for a net credit of around 1.75 and a 1.1% return

Buy to close the ABBV 17 Mar 157.50 call
Sell to open the ABBV 31 Mar 157.50 call

COVERED CALL
Blackstone (BX): 87.94

Ironically, Blackstone, our only financial stock, has managed to come through the carnage in the sector this past week unscathed and has traded higher for the past four days. That gives us a chance to sell an out-of-the-money covered call for a solid credit. We will go out two weeks to avoid the Federal Reserve meeting next week.

ACTION: Sell to open BX 31 Mar 96 call for a net credit of around 0.88 to 0.90 and a 0.9% return

FOR NEW MEMBERS: If you do not own BX, buy shares at market and sell the BX 31 Mar 96 call

TRADE ROLL
ONEOK (OKE): 60.47

ONEOK has sold off along with the energy market… even as natural gas prices remain elevated. This is our income stock that went from offering weekly options back to monthly options during the first quarter of last year, so it does limit what we can sell.

Let’s roll our call down 5 points and out to April. Natural gas prices and stocks tend trade lower heading out of winter, and we can always manage our call early if OKE goes on a run.

ACTION: Roll the OKE 17 Mar 70 call to the OKE 21 Apr 65 call for a net credit of around 1.05 to 1.15 and a 1.6% return

BTC the OKE 17 Mar 70 call
STO the OKE 21 Apr 65 call