Triple Play Income Trade Alert: BX, VALE

Dear Triple Play Income Member,

We have several positions with Friday expirations this week. Let’s get started rolling the first two.

Blackstone (BX): 

Blackstone has been in the news lately for many reasons. A previous large investor in natural gas and other energy companies, Blackstone has announced that their next private equity fund will not invest in oil and gas exploration or production. Blackstone is a big player in the real estate development and lending markets and has $731 billion of assets under management. Their Chairman and CEO Stephen Schwarzman pulled in $1.1B in dividends and compensation in 2021. They are a big financial player on Wall Street.

And Blackstone’s stock price has been crazy up and down for the last 60 days since its nearly 100% price run-up in 2021. But the stock still has plenty of volatility and rich premiums in the option chains for us to continue to sell options around.

Our 4 Mar 124 call is in the money and we’ll need to roll it out and up this week.

ACTION:  Roll BX 4 Mar 124 call to the BX 18 Mar 126 call for a net credit of around $1.35 to $1.40 and a 1.1% return

Buy to close 4 Mar 124 call

Sell to open 18 Mar 126 call

For a net credit of around 1.35 to 1.40

NOTE: If you are new to Triple Play Income, you can buy BX stock at market (126.30) and sell the 18 Mar 126 call for around 5.30 to 5.35 … a 4.2% return.

Vale S.A. (VALE):  19.19

Vale mines and produces iron ore for use in raw materials in steelmaking both in Brazil where the company is headquartered and around the world. Based out of Rio de Janeiro, Vale like RIO is one of the largest miners in the world. Again, VALE is one of our inflation beneficiary stocks that pays a rich dividend.

We entered this stock when it was trading at around 15.50 and it is now up 23% in just two months. We still don’t have a confirmation on the ex-dividend date (estimated to be 3/10 to 3/17). Our 4 Mar 17 put is worth a couple of pennies. Let’s buy it back and roll it out one more week.

ACTION: Buy back the VALE 4 Mar 17 put and sell the Vale 11 Mar 18 put for a net credit of around

Buy to close VALE 4 Mar 17 put

Sell to open VALE 11 Mar 18 put

For a net credit of around

NOTE:  If you are new to Triple Play Income, go ahead and sell the Vale 11 Mar 18 put.

David Durham

Triple Play Income