The stock market continues to give us a number of challenges with a nice run-up last week followed by a couple of days of selling and an up day and down day this week. A lot of it right now is news driven events. But we can still find ways to trade around it and through with our Triple Play Income approach.

Here are positions we can manage today.

TRADE ROLL

Dow Inc. (DOW):  60.28

We believe Dow Inc. is in good shape to improve margins and earnings per share while easily sustaining its 4.58% annual yield. A strong financial performance since the spin-off from Dupont has DOW continuing to trade in a tight range which is good for selling premium. Let’s roll our call out for more credit today.

ACTION:  Roll DOW 8 Apr 64 call to the DOW 22 Apr 63 call for a net credit of around 0.95 and a 1.5% return. 

Buy to close DOW 8 Apr 64 call

Sell to open DOW 22 Apr 63 call

OPEN CALL

Gilead Sciences (GILD): 60.89

Gilead Sciences stock has been an underperforming stock over the first quarter but is starting to trade in a tighter range. We’ve had 4 days of higher prices that we can feel more comfortable about selling a covered call.

ACTION:  Sell to open GILD 22 Apr 63 call for around 0.50 for a .8% return.

TRADE ROLL

Vale S.A.  (VALE):  20.36

Inflation beneficiary stocks continue to shine in this market. Vale’s growth pace has slowed but there is still plenty of premium to collect at this level. We will roll our call position out for another good chunk of credit.

ACTION:  Roll VALE 8 Apr 20.50 call to the VALE 22 Apr 20.50 call for a net credit of 0.43 to 0.45 and a 2.1% return.

Buy to close VALE 8 Apr 20.50 call

Sell to open VALE 22 Apr 20.50 call