We have two last positions to manage today before the close.
CF Industries (CF): 95.45
CF stock price backed off and is trading at the support level. There is still plenty of volatility in the stock that is giving us large premiums that we can roll put down several strikes and still collect a solid credit.
ACTION: Roll the CF 3 Jun 98 put to the CF 17 Jun 96 put for a net credit of around 0.90.
Buy to close the CF 3 Jun 98 put
Sell to open the CF 17 Jun 96 put
Philip Morris (PM): 106.08
Philip Morris stock price has held at the 103 to 106 level now for the last week. Let’s roll our position out
ACTION: Roll the PM 3 Jun 98 put to the 17 Jun 103 put for a net credit of around 0.80 to 0.85.
Buy to close PM 3 Jun 98 put
Sell to open PM 17 Jun 103 put
It looks like the S&P 500 will finish up for the week but this market still feels choppy day-to-day. We are seeing stability return to some of our positions but increasing volatility in our inflation beneficiary positions.
Still not clear what direction this market wants to trade as we head into the summer months. This will create potential option and dividend opportunities with some of our current positions. We are in the process of again reviewing our new potential new stocks to see where we can add one or two that could trade well in this current environment.
Have a good weekend.
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