After a wild few days in the market last week, maybe we will see some calmer conditions prevail. Volatility has eased and there are some opportunities for us to manage a couple of our positions early in the week.

NEW TRADE

Dow Inc. (DOW):  68.29

Our Dow 66 put expired worthless last Friday. DOW goes ex-dividend on 5/27 and we can still collect premium for one more week before we acquire the stock. We will sell a put option for this Friday and then we’ll look to buy the stock next week.

ACTION:  Sell DOW 20 May 67 put for a net credit of around 0.55 to 0.65 and a .9% return.

TRADE ROLL

IBM (IBM):  135.44

IBM is trading in a short-term uptrend and our 20 May 135 call is in the money. Let’s roll the call out and up today.

ACTION:  Roll IBM 20 May 135 call to the 3 Jun 137 call for a net credit of around 0.88 to 0.92

Buy to close IBM 20 May 135 call

Sell to open IBM 3 Jun 136 call