Today I would like to make a suggestion on a position we traded before.
But, today I am going to suggest a covered call.
The stock is ProAssurance Corp. (PRA).
PRA is trading at $16.45 as I write this.
My suggestion is to buy PRA at the market.
Then Sell to Open (1) August 21st - $17.50 call for $.40 for every 100 shares you buy.
Based on the nominal portfolio, limit the stock buy into 400 shares or 6% allocation.
If you buy 400 shares, you will then sell 4 calls.
These calls expire in two weeks.
The return for two weeks if the calls are assigned, will be 8.8%.
