Gentex (), a company that makes auto-dimming rearview mirrors and windows, has been featured on Trade of the Day before, but it’s still attractive for new money.
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%.
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