We held our Triple Play Income Quarterly Review session yesterday (8/3) where we had a chance to go through all of our trade positions and look at new additions in the coming weeks. If you missed the session, the recording has been posted on the member web site under Videos. Here is the link to the recorded session.
Given the market stability and gradual rise over the last few weeks, we will be called out of a few of our positions and get back to selling puts in between ex-dividend dates.
Cardinal Health (CAH): 60.60
As I mentioned in the review session yesterday, Cardinal Health stock finally got the attention of Wall Street and is trading higher. Our 5 Aug 54 call is too far in the money to roll it up for a credit so let’s take assignment and let CAH stock be called away.
ACTION: No Action. Let our Cardinal Health stock be called away. We will sell puts on CAH next week.
CF Industries (CF): 99.74
CF Industries continues to be our “hot hand” inflation play in the agricultural commodity sector. After a missed on their recent earnings report, the stock is running higher again based on demand for fertilizer products.
CF goes ex-dividend next Friday (8/12) but we can roll our puts out and up and collect far more net cash than the 0.40 dividend if we were to buy the stock. CF is volatile enough trade that we want to continue to manage it from the ‘put selling’ side.
ACTION: Roll the CF 5 Aug 95 put to the CF 12 Aug 97 put for a net credit of around 1.65 to 1.70 and a 1.7% return
Buy to close CF 5 Aug 95 put
Sell to open CF 12 Aug 97 put
Gilead Sciences (GILD): 62.20
Gilead Sciences beat earnings estimate by very small amount this week but raised 2022 guidance and that has spurred the stock price over the last couple of days. We can roll our 5 Aug 63 call out two weeks for a net credit.
ACTION: Roll GILD 5 Aug 63 call to the 19 Aug 63 call for a net credit of 0.55 to 0.62 and a 0.9% return.
Buy to close GILD 5 Aug 63 call
Sell to open GILD 19 Aug 63 call
Southern Co. (SO): 78.18
Southern Co. stock price has rallied hard up to the 78-price point. A pretty good “pop” over the last 2 weeks for a traditional sleepy utility stock. Our 5 Aug 73 call is too far in the money to manage so we will take assignment and let our shares be called away this weekend. SO goes ex-dividend next Friday (8/12) so we will need to buy the stock by Thursday … right now looking for any kind of pull back in the first part of next week to get in. We will buy the stock next week and sell calls.
ACTION: No Action. Let SO stock be called away.
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