Today, I would like to make a recommendation on a stock that does have weekly options. And I want to suggest a weekly covered call.
And it is a stock we traded recently.
The stock is Clovis Oncology, Inc. (CLVS).
CLVS is trading at $7.31 per share as I write this.
My suggestion is to buy CLVS at the market, which is $7.33 as I write this.
Then Sell to Open (1) June 12th - $7.50 Call for every 100 shares you buy.
You should be able to sell them for $.25 per every option.
Based on the nominal portfolio, limit the share buy in to 600 shares or 4.4% of the portfolio.
Assuming you buy 600 shares, you would sell 6 of the June 12th $8 Calls.
If the calls are assigned this Friday, the return will be 5.7% for 5 days.