Both of the options trades that we announced via alert yesterday failed to fill.

For now, we’re keeping the TRP trade open until it fills.

But we’ve revised the parameters for the CNR trade (including strike price and limit) as follows:

Revised Alert 1: Getting off the Rails–Round 2:

Investment Thesis: Last month, we recommended that investors sell a covered call on Canadian National Railway Co. (TSX: CNR, NYSE: CNI). We closed this position on June 21, for a profit of 38%.

The fundamentals as described last month have not changed: The stock remains somewhat expensive, profits are under pressure, and the dividend yield is only 1.9%. However, the share price bounced back over the past few weeks giving us the opportunity to reinstate the original strategy.

Option Strategy: Sell to open a covered call option with a strike price of C$84 with a Sept. 16, 2016 expiration at or above C$0.65 per option.

This will yield a C$65 premium per option (C$0.65 x 100). In addition to the option premium, the shareholder will earn the dividend (C$0.375 per share) before the option expires (except if the call is assigned before the dividend registration date) plus any capital appreciation up to the call strike price.

The most similar U.S. call option on CNI is the US$65 strike with an Oct. 21, 2016 expiration.