We have several positions that we should manage today.

TRADE ROLL

CF Industries (CF):  100.48

There’s lots of noise around CF Industries and other fertilizer stocks … supply chain issues, railroad resistance to shipping fertilizer, and analyst downgrades. Commodity stocks have been hit and it is impacting CF stock price. 

CF reports earnings on 5/4. Let’s roll our put down for less credit and give us some room while rolling out one week to 4/29. While I would expect the 1st quarter earnings report to be strong, it’s the guidance that may gave the Street an excuse to sell the stock after earnings. We will exit the trade ahead of earnings and sit it out until the smoke clears.

ACTION:  Roll CF 22 Apr 100 put to the CF 29 Apr 97 put for a net credit of around 0.70 to 0.75

Buy to close CF 22 Apr 100 put

Sell to open CF 29 Apr 97 put

TRADE ASSIGNMENT

Dow Inc. (DOW):  69.65

Dow turned in a solid earnings report with EPS of $2.34 beating estimates by $0.29 and revenue of $15.3 billion beating by $760 million. Management continues to gain cost advantages, control expenses, and reduce debt. And now the stock is being rewarded up almost 3% today.

We’ve run out of room to roll our calls out and up to collect a credit. We will alert the stock be called away this weekend. For those newer members who got into DOW in the high 50’s to low 60’s, you’ll be getting out with some appreciation. We entered originally bought Dow stock last may for $69 and rewarded for it in 2021. We will have some catch-up to do this spring.

ACTION:  No action. Allow DOW stock to be called away.

TRADE ROLL

Gilead Sciences (GILD):  64.10

Gilead reports earnings next Thursday (4/28). Let’s roll our call out two weeks and up a strike to give us some room in case the stock runs. We will not collect much in premium but we give ourselves another $1.00 on capital gains.

ACTION:  Roll GILD 22 Apr 63 call to the GILD 6 May 64 call for a net credit of around 0.25

Buy to close GILD 22 Apr 63 call

Sell to open GILD 6 May 64 call