Today, I would like to make a suggestion on a stock we have traded in the past.
The stock is Clovis Oncology, Inc. (CLVS). It appears that CLVS has turned the corner and is making a push higher.
I would like to suggest a weekly covered call on the stock and use next week's expiration, which is September 18th.
CLVS is trading around $5.86 as I write this.
Buy CLVS at the market and then execute the sale of this call.
Sell to Open (1) September 18th - $6.00 Call for every 100 shares you own.
You should be able to sell them for $.30 for every option.
If the calls are assigned next Friday, the return will be about 7.5% for a week and one half.
Based on the nominal portfolio, limit the buy in to 600 shares, which is 3.5% of the portfolio.