Rigel Pharma Covered Call

Here’s a decent “high probability” covered call that came up in the scans tonight. $RIGL is a pharmaceutical company that has some pending news on a rheumatoid arthritis drug so keep that in mind. With that being said, as of close today, you could buy the stock and write the $10 calls for July for a net debit of $9.30. With the stock currently trading at $12.30 you’d have a nice 24.4% downside protection. The ROI on the covered call would net a respectable 7.5% for a few weeks “work” and it’s a 71.6% probability of being called away.