A short trading week after the 4th of July Holiday. After opening down yesterday, the market is trading flat through this morning. This gives us a chance to roll some of our covered calls out, down and even up. Let’s start with these first two positions.
Dow Inc. (DOW): 50.12
Dow stock price is getting held back along with other stocks in a soft materials sector. We will roll our 8 Jul 56 call out and down for now.
ACTION: Roll the DOW 8 Jul 56 call to the DOW 22 Jul 54 call for a net credit of around 0.50 to 0.5 and a 0.9% return.
Buy to close DOW 8 Jul 56 call
Sell to open DOW 22 Jul 54 call
IBM (IBM): 137.65
IBM continues to trade between 135 and 145. We can roll our 8 Jul 137 call out and up for a nice credit.
ACTION: Roll IBM 8 Jul 137 call to the 22 Jul 138 call for a net credit of around 2.40 to 2.44 and a 1.7% return
Buy to close IBM 8 Jul 137 call
Sell to open IBM 22 Jul 138 call
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