We have several positions with calls or puts expiring today that we need to manage. Let’s get to it.
Blackstone (BX): 123.15
Blackstone stock is rallying and giving us a good chance to collect even more cash. There’s plenty of premium in BX to roll calls out one week at a time. Let’s roll our 18 Mar 126 call out and up one week.
ACTION: Roll BX 18 Mar 126 call to the BX 25 Mar 126 call for a net credit of around 1.05
Buy to close 18 Mar 126 call
Sell to open 25 Mar 127 call
ONEOK Inc. (OKE): 66.71
The move from weekly options to monthly options only in ONEOK is making it harder to roll our positions. At first glance, it will be hard to roll our 18 Mar 62.50 up to the next strike in April – the 65 without paying a debit.
Let’s take assignment on OKE and let the stock be called away. We have $3 in credit this year so far so we’ll give some cash back in the short term but we can sell a put next week and start making that back.
ACTION: No Action. Let OKE stock be called away.
Note: If you are new to Triple Play Income, wait until next week when we sell a new put on OKE.
Philip Morris (PM): 94.06
Philip Morris stock price has gradually moved higher in the last week as volatility in the market has dropped. PM is a great triple play dividend play over the long haul but short-term the whipsaw in the market has been a challenge to manage.
PM stock goes ex-dividend on Wednesday (3/23) and may continue in an upward trend back towards $100. With our 107 put strike it’s too much a difference to take assignment just to collect the dividend.
We can roll the call out to next Friday for around $1.27 … the same amount as the dividend. We’ll miss the dividend this quarter but stay in the trade for another week. We will manage the position again next week.
ACTION: Roll the PM 18 Mar 107 put to the PM 25 Mar 107 put for a net credit of around 1.25 to 1.27
Buy to close PM 18 Mar 107
Sell to open PM 25 Mar 107 put
Note: If you are new to Triple Play Income, hold off entering this position until next week when we’ll have a clearer picture of the stock around ex-dividend date.
Triple Play Income
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