June 12, 2020 - MDT Alert (PRA)

Today, I would like to make a suggestion on a position we just swing traded.

But this time, I am going to suggest a covered call.

The stock is ProAssurance Corp (PRA).

PRA is trading at $14.10 as I write this.

My suggestion is to buy PRA at the market.

Then Sell to Open (1) June 19th - $15 call for $0.40 for every 100 shares you buy.

Based on the nominal portfolio, limit the stock buy in to 400 shares or 5.6% allocation.

If you buy 400 shares, you will then sell 4 calls.

The return for one week, if the calls are assigned, will be 9.2%.

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