Here are several more trade adjustments for our Triple Play Income portfolio.
AbbVie Inc. (ABBV): 152.88
AbbVie stock price has found a footing here in the 152 range. We feel comfortable enough to sell a covered call below our entry price and manage it tightly.
ACTION: Roll ABBV 13 May 167.50 call to the ABBV 27 May 160 call for a net credit of around 1.20 to 1.30
Buy to close ABBV 13 May 167.50 call
Sell to open ABBV 27 May 160 call
CF Industries (CF): 98.56
Fertilizer prices are still on the rise and CF Industries is a big beneficiary in this market. Earnings were mixed with EPS of $4.21 missed by $0.36 but revenue of $2.87 billion beat by $250 million and 173% higher year-over-year. CF stock sold off for a few days but bounced back as news about continued rising fertilizer prices hit the market.
CF goes ex-dividend tomorrow (5/13) but we’ve already said we will skip the dividend of 0.40 in favor of continuing to roll our put options out for 3X to 4X more cash. We will roll our 13 May 92 put out a week.
ACTION: Roll CF 13 May 92 put to the CF 20 May 92 put for a net credit of around 1.50 – 1.55
Buy to close CF 13 May 92 put
Sell to open CF 20 May 92 put
Southern Co. (So): 73.60
Utility stocks continue to be a relatively safe haven amid the market carnage. Southern Co. price has held in the mid 70’s and goes ex-dividend tomorrow (5/13). We own the stock, we will earn the dividend, and we can sell a covered call today knowing the stock will trade down less the dividend (0.68) tomorrow.
ACTION: Sell to open SO 20 May 75 call for a credit of around $0.65 – 0.70
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