The DOW and most of the market is down today but our natural resource stocks are running. We can trade two of our positions today.
CF Industries (CF): 99.50
Our natural resource/inflation beneficiary stocks have been whipsawed like crazy over the last two weeks due to the news coming out of Ukraine. CF being no exception … hitting a 52-week high of $100 10 days ago, trading down to $89 and now back up over $99.
Let’s get back into CF Industries today selling another out of the money put 11 days out with a 77% potential of finishing out of the money.
ACTION: Sell to open CF 1 Apr 91 put for a credit of around $1.10 to $1.16 and 1.1% return.
Rio Tinto (RIO): 77.35
We own Rio Tinto at 79.93 per share and now that we’ve earned the 4.17 dividend and the stock price has moved higher, we can sell a covered call for April. Remember, RIO trades only monthly options and they have fractional pricing.
ACTION: Sell to open RIO 14 Apr 81.88 call for a credit of around 0.95 to 1.00 for a net 1.2% return.
We have other Triple Play Income positions to manage this week. Stay tuned for more alerts this week.
Invest Smarter,
David Durham
Triple Play Income
Get notified about new articles, special events, training, and much more