Perpetual Income Trade Alert: CAH, PM

Editor’s note: We are holding our Q1 Perpetual Income Review Session tomorrow, April 26, at 2 p.m. Eastern.

We’ll look at our first-quarter results, review key positions, discuss a few additions we will be making to the service and, of course, take your questions. Please join us.

Register to attend the session here.


With the market falling ahead of the big tech companies reporting earnings this week, we can manage a few of our positions today.


Cardinal Health (CAH): 80.73

Cardinal Health is scheduled to report earnings on May 4, which gives us plenty of elevated premium to roll our put position out another week.

ACTION: Roll CAH 28 Apr 79 put to the CAH 5 May 79 put for a net credit of around 1.00 to 1.05.

Buy to close CAH 28 Apr 79 put
Sell to open CAH 5 May 79 put


Philip Morris (PM): 98.93

Philip Morris enjoyed a nice run-up for roughly a month before dropping sharply after a relatively flat earnings report on Thursday. The stock has rallied the past two days, though, so let’s roll our call out to collect more premium.

ACTION: Roll PM 28 Apr 99 call to the PM 12 May 99 call for a net credit of around 0.43 to 0.48.

Buy to close PM 28 Apr 99 call
Sell to open PM 12 May 99 call

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