Dear Triple Play Income Member,
The market continues to whipsaw back and forth. Today oil and natural resource stocks are down along with the rest of the market. We have a number of positions to manage this week. Let’s get started today.
Gilead Sciences (GILD): 58.30
We started trading Gilead Sciences in the Triple Play Income portfolio in early fall of 2021 as the stock price traded relatively flat and after the 6th straight year management raised the dividend rate. Gilead had transformed from a growth pharma company into what looked like a reasonably defensive dividend play.
However, the stock has traded down again with the market since December … some of that is attributable to the fact that Gilead hasn’t had a lot of success with some of its new drug sales… the other getting lumped in with the biotech’s which have sold off in that same time.
GILD stock price is up today while trading ex-dividend as we earned 0.73 dividend per share which is an annualized dividend of 5.03%. The stock looks to be in a short-term positive trading trend. Let’s open a new call position.
ACTION: Sell to open GILD 1 Apr 61 call for around $0.44 to 0.46 per share.
Note: If you are new to Triple Play Income and do not own the stock, you can buy GILD stock at market and sell the same 1 Apr 61 call.
Dow Inc. (DOW): 60.26
Dow stock seems to have found a bottom in this market as a defensive play. Management continues to execute a growth with profit-oriented strategy since the spin-out from Dupont … reducing debt, focusing on core product growth, and managing a tight bottom line. We expect Dow to continue to be a profitable but conservative dividend play in our Triple Play Income Portfolio.
The stock is uncovered. Let’s sell a short-term call and begin to collect premium again over the next couple of weeks.
ACTION: Sell to open DOW 25 Mar 63 call for a net credit of around 0.50
Triple Play Income
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