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TRADE: COVERED CALL
B&G Foods (BGS): 25.80
We have been waiting for BGS stock price to rally before we sold a monthly option. The stock has slowly climbed higher over the last few weeks past the 25 strike and we can sell a covered call at 19 Aug 27.50 to collect premium.
Yes, B&G Foods reports earnings on Thursday after the market close … if the report is good and the stock rallies, we still have 15 days before expiration to manage the position. If the stock trades lower, we keep the premium.
ACTION: Sell to open BGS 19 Aug 27.50 call for around 0.35 to 0.37 and a 1.3% return.
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