PS received a tender offer today from Vista Equity Partners.

As a result of the offer, PS is trading for $20.10 and the $17.50 calls that you sold have gone to par.

This means there is no time value left in the options.

These options expire this coming Friday.

You could just wait until Friday and have the options assigned and your stock will be automatically sold at $17.50, but I am going to suggest you close the position today and go to cash. 

If you trade through a broker where your commissions may be high, you could consider just leaving the position alone.

Here is how you unravel this trade.

Buy to Close the December 18th-$17.50 call for $2.60

After you close the short call position, then sell PS at the market, which is $20.10.

As I said, you book the maximum on the position today, which is 7.4% for 13 days.

If you traded the suggested 400 share lot, the cash return is $484 for those 13 days.

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.

EGAN is up slightly since I suggested buying the stock back on November 25th.

It is up against some short term technical resistance and as such, I am going to suggest you close the position.

Sell EGAN at the market, which is $11.74.

The result will be a small gain of 3.4% for 10 days.

If you traded the suggested 400 share lot, the cash return will be $156.

I am going to suggest you close out the CVS position I suggested yesterday.

This is mainly because from a technical standout, it is overbought.

Here is how you close the position:

Sell to Close January 8th - $70.00 Call for $3.00

Buy to Close January 8th - $75.00 Call for $1.00

The net debit will be $2.00 per spread.

The trade was initiated yesterday for $1.50, so the profit is $50 per spread.

If you traded the suggested 6 lot, the gain is $300 overnight or 33% for one day.

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

The stock I want to suggest is Pluralsight, Inc. (PS).

PS is trading around $16.84 as I write this.

My suggestion is to buy PS at the market, which is $16.84.

After buying the stock, execute this trade:

Sell to Open December 18th - $17.50 call for $.55.

Based on the nominal portfolio, limit the stock purchase to 400 shares
or 6.7% of the nominal portfolio.

This would mean you would sell 4 calls.

If the calls are assigned in three weeks, the return will be 7.2%.