May 22, 2020 - MDT Alert (MOS)

With the short week coming up next week, I would like to make a suggestion on a weekly covered call.

The stock is Mosiac Co. (MOS).

As I write this, MOS is trading around $11.52.

My suggestion is to buy MOS at the market.

Then Sell to Open (1) May 29th - $12 call for every 100 shares you buy.

You should be able to sell them for $.25.

If these calls are assigned next Friday, the return will be 6.3% for one week.

Based on the nominal portfolio, limit the stock buy in to 500 shares or 5.7% of the portfolio.

Assuming you buy 500 shares, you will sell 5 of the May 29th - $12 calls.

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