Two of our inflation beneficiary stocks are uncovered and have now put in several days in a row of positive price gains. We can sell calls on these positions today.




Rio Tinto Group (RIO):  70.20


We have around $10 of cash (1 contract) in RIO since the beginning of the year trading and we acquired the stock at $80. RIO only trades monthly options but we can sell a call at 75 for June and still collect a good premium.


ACTION:  Sell to open RIO 17 Jun 75 call for around 1.00 to 1.05 and a 1.4% return.





Vale S.A. (VALE):  17.35


Vale is involved in the mining and production of iron ore as this resource commodity has been in demand over the last 2 years. While it has been heavily exposed to demand from China and iron ore prices may be at their peak, the stock at $17 is fairly valued and continues to support its near double digit dividend yield.


ACTION:  Sell to open VALE 10 Jun 19 call for a credit of around 0.17 and a 1% return.

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