Look to execute a covered call write on the Sohu Sep 70. I'm looking at the underlying at about 72.50 and the bid of the Sep 70 at about $.90. Total investment should be about $6760. Total profit if unchanged will be about $480 which is a 7.36% return to expiration which translates to 61.64% annualized. There is 10.07% downside protection.
The key, as always, is to get the trend of the underlying instrument correct. In this case, Sohu has passed our strict fundamental criteria. I wouldn't initiate the covered call write until we see some strength in the SOHU stock. Right now, it is drifting lower. Still, this is a strong candidate for purchase! Watch it closely!