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.

I find it difficult to pass up on taking in call premium. And as such, I am going to suggest you sell calls against the BOX open position

And with the December expiration a week and one half away, we have 7 days to watch the premium melt away.

As such, here is the suggestion:

Sell to Open (1) December $18 Call for every 100 shares you buy.

You should be able to sell them for 25 cents each.

This will bring the premium collected on this position to $1.30 per share.

This alert applies to you only if you own shares in BOX.

While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a six-month time frame, Mad Day Trader, provided by Bill Davis, will exploit money-making opportunities over a brief ten minute to three-day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points. Read more

While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a six-month time frame, Mad Day Trader, provided by Bill Davis, will exploit money-making opportunities over a brief ten minute to three-day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points. Read more

While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a six-month time frame, Mad Day Trader, provided by Bill Davis, will exploit money-making opportunities over a brief ten minute to three-day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points. Read more