Here are the last few of our positions we need to manage before the weekend.
Dow Inc. (DOW): 54.71
I thought today’s market sell-off might help us roll our DOW 26 Aug 54 call out and up for a good credit but far enough away from the current stock price to avoid assignment before the ex-dividend date.
We really can’t roll it up and out to 55 with the stock trading only 0.27 away so let’s assume we will be called out of DOW stock this weekend. We will buy the stock on Monday and sell a covered call.
ACTION: No Action. Allow DOW stock to be called away.
Philip Morris (PM): 97.67
We finally get a break with Philip Morris today with the market down. We can roll our 26 Aug 98 call out and up today for a decent credit. Let’s take it.
ACTION: Roll PM 26 Aug 98 call to the 9 Sep 99 call for a net credit of around 0.80 to 0.85 and a .9% return
Buy to close PM 26 Aug 98 call
Sell to open PM 9 Sep 99 call
Southern Co. (SO): 78.94
The drop in SO stock price today will allow us to roll the call and collect a good credit. Let’s roll our 26 Aug 79 call out two weeks.
ACTION: Roll the SO 26 Aug 79 call to the 9 Sep 79 call for a net credit of around 0.90 to 0.95 and a 1.2% return
Buy to close SO 26 Aug 79 call
Sell to open SO 9 Sep 79 call
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