The stock market reversed course from this morning giving us a chance to roll 3 of our positions with options expiring tomorrow.
Cardinal Health (CAH): 55.69
Cardinal Health stock has held up reasonably well in this up-and-down market. The company doesn’t report earnings until 8/11, so we can roll our calls out two weeks and collect a solid credit.
ACTION: Roll the CAH 22 Jul 54 call to the CAH 5 Aug 54 call for a net credit of around 0.50 to 0.55 and a 1% return.
Buy to close the CAH 22 Jul 54 call
Sell to open the CAH 5 Aug 54 call
CF Industries (CF): 84.95
We’ve discussed before that fertilizer prices are starting to ease around the world, but the demand hasn’t dropped in a significant way yet. CF stock price continues to trade in the 85 to 90 range. Let’s roll our puts out two more weeks.
ACTION: Roll the CF 22 Jul 95 put to the CF 5 Aug 95 put for a net credit of around 0.75 to 0.80
Buy to close CF 22 Jul 95 put
Sell to open CF 5 Aug 95 put
Southern Co. (SO): 70.92
We continue to grind away rolling our Southern Co. calls each week. Let’s roll them out 2 weeks to 5 Aug.
ACTION: Roll the SO 22 Jul 73 call to the SO 5 Aug 73 call for a net credit of around 0.40 to 0.45
Buy to close the SO 22 Jul 73 call
Sell to open the SO 5 Aug 73 call
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