The stock is trading in a constructive pattern and should trend higher this week with a tame market. I would expect this position to also work in our technical favor, with GNTX stock moving above $30 so that our shares are called away.
Recommendation: For every 100 GNTX shares that you own or purchase at market, sell one at-the-money GNTX Dec. $30 call contract at current levels. If you acted on my original recommendation earlier this month, you would have been filled around $0.65 and the calls are still offering attractive premium. I would expect that based on current valuations, with GNTX trading just under $30 and the calls around $0.75, selling a call should yield about 3%.
Bryan Perry is the editor of Cash Machine, a newsletter focused on high-yield income investing with the goal of maintaining a blended total yield of 10% across two portfolios. Bryan is also the editor of Extreme Income,which uses the power of historically cheap money to create a leveraged “baby hedge fund” strategy that paves the way to massive profits and 4x greater income.
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