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.
Triple Play Income
Get notified about new articles, special events, training, and much more
Leave your info below to get more options and trading ideas to your inbox
Yes, send me news to my inbox.