Today, I would like to make a suggestion on a covered call.
And the stock is Turtle Beach Corp. (HEAR).
HEAR is trading around $19.60 as I write this.
The December monthly calls expires in 6 days.
I am going to suggest you buy HEAR at the market, which is $19.60.
After you buy the stock, then sell the December $20 call.
Here is that part of the trade:
Sell to Open one December 18th-$20 call for $.65 for every 100 shares you buy.
If these calls are assigned next Friday, the return will be 5.4% for just over a week.
Based on the nominal portfolio, limit the stock buy in to 300 shares, or 5.9% of the tracking portfolio.
