Today I would like to make a recommendation on a stock that does have weekly options. And I want to suggest a weekly covered call.
The stock is Clovis Oncology, Inc. (CLVS).
CLVS was a former high flyer trading as high as $100 per share.
It now trades for less than $10 per share. But, I do believe it has put in a bottom.
My suggestion is to buy CLVS at the market, which is $7.58 as I write this.
Then sell to Open (10) May 8th - $8 Call for every 100 shares you buy.
You should be able to sell them for $.35 per every option.
Based on the nominal portfolio, limit the share buy in to 500 shares or 3.8% of the portfolio.
Assuming you buy 500 shares, you would sell 5 of the May 8th $8 Calls.
If the calls are assigned this Friday, the return will be 10.2% for 5 days.
