Perpetual Income Trade Alert: CAH, NTAP

Editor’s Note: Welcome again Perpetual Income (our new name replacing Triple Play Income).

We will hold another live online Quarterly Review Session on Wednesday, April 26, at 2 p.m. Eastern. Register to attend the review session here.

We will record the webinar and post it to the member website for those who cannot attend the session live.

During the session, we will review the previous quarter and our positions, go over where our stocks are in the current economic cycle, take a look at potential new positions, and talk further about new tactics to add income to our trading.

We hope to see you there.

We were called out of two of our positions last week: Cardinal Health (CAH) and NetApp (NTAP). Let’s re-enter those positions by selling puts today.

SELL PUT
Cardinal Health (CAH): 79.72

Cardinal Health continues to benefit from healthcare tailwinds and strong financial performance. The company is scheduled to announce earnings on May 4. Let’s take advantage of the elevated premiums and sell a put.

ACTION: Sell to open CAH 28 Apr 79 put for around 0.70 to 0.75 and 0.9% return.

SELL PUT
NetApp (NTAP): 67.42

 NetApp is a well-run data management company in a strong growth space. We traded this stock for the first time last month ahead of the ex-dividend date, and we earned a 0.50 dividend. We were called out the stock this past weekend. Let’s re-enter the position by selling a put option today.

ACTION: Sell to open NTAP 28 Apr 67 put for around 0.65 to 0.70 and a 1% return.