October 6, 2020 - MDT Alert (BOX)

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

And the stock is Box, Inc. (BOX). BOX doesn't report until November 24th.

I am going to suggest you buy the stock and sell the October monthly call option against the position.

BOX is trading around $17.65 as I write this. My suggestion is to buy BOX at the market.

Then Sell to Open (1) October $18 for every 100 shares you buy.

You should be able to sell them for 40 cents each.

Based on the nominal portfolio, limit the trade to 400 shares or 7% of the tracking portfolio.

If the calls are assigned next Friday, the return will be about 4.2% for 8 days.

/by

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