Triple Play Income Trade Alert: GILD, VALE

Dear Triple Play Income Member,

We have two positions we will manage at the end of the week here.

Gilead Sciences (GILD): 61.15

We are holding Gilead Sciences stock uncovered. We were looking for a larger bounce in the stock price to get back in with a call, but the stock looks like it has bottomed out for now. GILD goes ex-dividend on 3/14.

Let’s sell a call two weeks out.

ACTION: Sell to open GILD 11 Mar 64 call for a net credit of around 0.45 to 0.47.

Vale S.A. (VALE): 17.25

Vale is our volatile natural resource/inflation beneficiary stock position with a still unknown ex-dividend sometime in March. Our 25 Feb 17 put is expiring today and we can roll the put out one week until we get more clarity on the dividend date.

ACTION: Roll VALE 25 Feb 17 put to the 4 Mar 72 put for a net credit of around 0.25 and a 1.47% return

Buy to close VALE 25 Feb 17 put

Sell to open VALE 4 Mar 17 put

A wild short week in the market. Our positions are generally holding up from the worldwide market disruptions and we will be managing a number of those positions next week.

Have a good weekend.

David Durham

Triple Play Income