August 10, 2020 - MDT Alert (PRA)

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%.

/by

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