Editor’s Note:  A reminder that we will be holding our Triple Play Income Quarterly Review Session tomorrow (8/3) at 2:00 PM Eastern. If you haven’t registered for the webinar, you can sign-up here at Triple Play Income Quarterly Review Session.

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.