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.

DBX is trading about 5.8% lower today and they report next week.

Yesterday, it was trading above the short strike and now it is well under the $20.50 strike.

I don't like the price action, so I am going to suggest you unwind the position.

Sell DBX at the market, which is $19.80.

And Buy to Close the May 1st - $20.50 call for 4 cents.

Overall, there will still be a profit on the position.

This alert applies to you only if you own DBX and sold the $20.50 call that expires today.

Today I would like to make a stock recommendation. The company is United Natural Foods, Inc. (UNFI).

UNFI does not have weekly options, only monthly, but I am not going to suggest a covered call just yet.

Buy UNFI at the market, which is $10.80.

Based on the nominal portfolio, limit the trade to 400 shares or 4.3% of the total portfolio.

I cannot think of any good reason to hold the CB position any longer.

CB has moved up over the short strike price in two days and as a result, you will pick about 38% of the maximum profit in those two days.

So, my suggestion today will be to close the position and
book the profit.

Here is how you do that.

Sell to Close June 19th - $105.00 call @ $10.70

Buy to Close June 19th - $110.00 call @ $7.50

The net credit will $3.20 per spread. The cost, when initiated, was $2.10 per spread.

The net result is a profit of $1.10 per spread or $550 if you traded the suggested 5 lot.

The return for the two days in 52% of the amount invested.

Keycorp is now a bit overbought and I would like to take this chance to book the profit.

Sell KEY at the market, which is $12.12.

This results in a profit of $700 if you traded the suggested 500 shares.

You should have also made another $160 in the short call that expired Friday.

The total gain is $860 for 11 days or 16% for the 10 days.