We have three positions expiring tomorrow. Two of them are too far in the money to roll and we will be called out of the stock. The other position we can roll today for a credit while picking up another $1 in potential appreciation.
Cardinal Health (CAH): 81.12
Cardinal Health has been on a roll and our CAH 14 Apr 76 call is way in the money. Unless there is a collapse in the market tomorrow, we will get called out of the stock and sell a put next week.
ACTION: Allow CAH shares to be called away.
NetApp (NTAP): 66.72
We got a surprising move to the upside in NetApp over the past week and our NTAP 14 Apr 64 call is well in the money. Unless the stock sells off hard tomorrow, we will be called out at $64, which is OK. We paid 63.24 to enter the position and will be happy to keep our call premium and the extra 0.76 of appreciation.
ACTION: Allow NTAP shares to be called away.
Philip Morris (PM): 99.65
Philip Morris keeps pushing its business toward smoke-free products and getting upgrades from prominent Wall Street analysts excited about the potential for new growth. The stock price has hovered in the 95-to-100 range, which is good for us as dividend hunters and option income investors.
The company is scheduled to report earnings on April 20, which gives us elevated premiums to roll our 14 Apr call out and up for a small credit while picking up another $1 in potential appreciation.
ACTION: Roll the PM 14 Apr 98 call to the PM 28 Apr 99 call for a net credit of around 0.10 to 0.20.
Buy to close PM 14 Apr 98 call
Sell to open PM 28 Apr 99 call