Three more positions to review with one to manage today.

ASSIGNMENT

Kraft Heinz (KHC):  43.48

Well … Kraft Heinz was able to do something it hasn’t been able to do lately … beat earnings estimates without totally relying on just price increases. The company reported EPS of $0.60 above estimates of $0.53 and revenue of $6.05 billion, $240 million beyond estimates … both attributable to management improving profit margins.

The stock price had been retracing down before the report and is now trading back up around $43. Our 29 Apr 39 call is in the money and there is not enough premium to roll it out. We will take assignment and let the stock be called away this weekend. We will re-enter the position selling a put next week.

ACTION:  No Action. Let KHC stock be called away.

ASSIGNMENT

Philip Morris (PM):  102.98

Philip Morris stock price slowly and surely keeps moving higher. We are past the point where we can roll our 29 Apr 95 call out for a reasonable credit. We still like PM as a dividend play, but we will take assignment and let the stock be called away. We can get back in the position next week selling a put.

ACTION.  No Action. Let KHC stock be called away.

TRADE ROLL

Southern Co. (SO):  75.65

Southern Co. turned in a nice earnings report. Q1 EPS of $0.97 beat estimates by $0.06 with revenue of $6.5 billion a 11% increase year-over-year. This is why we like having at least one utility in our portfolio. Mostly dependable quarterly earnings reports and more stability.

SO goes ex-dividend on 5/13, so let’s roll our 29 Apr 75 put out one more week to either take assignment or let it expire and buy the stock.

ACTION:  Roll SO 29 Apr 75 put to the 6 May 75 put for a net credit of around 0.50.

Buy to close SO 29 Apr 75 put

Sell to open SO 6 May 75 put