December 10, 2020 - MDT Alert (HEAR)

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.

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