Valero (VLO) has begun a nice breakout above the 89 day SMA (see chart). There is some resistance at 55 from a previous high and also at the 57.65 price range (200 day EMA). Let's try to capture a little more premium off of the stock by selling the June 57.5 Calls.
If possible, try to get $0.60 per contract. The initial return isn't really that important since this trade is somewhat of a hedge. We are creating a short strangle by legging into the Call. The margin requirement should be the greater of either the Call or Put. For those of you more aggressive option writers, you can sell the 55 Calls for about $1.20 per contract.