December 14, 2020 - MDT Alert (IQ)

Today, I would like to make a suggestion on a covered call.

And it is on a stock we traded in the past. The stock is iQIYI Inc. (IQ).

IQ is trading around $22.40 as I write this.

My suggestion is to buy IQ at the market. Then execute this option trade.

Sell to Open one December 18th-$23 call for $.25 for every 100 shares you buy.

If these calls are assigned this Friday, the return will be 3.8% for four days.

Based on the nominal portfolio limit the stock buy in to 300 shares, or 6.7% of the tracking portfolio.

If the calls are not assigned this Friday, then I will continue to sell calls against the position.

IQ does have weekly options.

/by

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December 14, 2020 December 15, 2020

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