Bear Put Spread Realty Income (O) With Yield Up To 58%

I bought a spread in O.

music selection:  “Never Enough” — L.A. Guns

weigh-in:  217.2 (0.6)

Realty Income (O) is a Dividend Aristocrat that pays monthly. It is a REIT that is known for growing its distribution often more than once a year. It has a nice chart for an in-the-money spread with a sideways consolidation movement year to date. I have gone 7.12% in the money for downside protection by buying the 65/70 strikes bear put spread on the 16APR2021 expiry for 4.70 a share (10 spreads). The trade will be in force for about 40 days and have 4,700 dollars in capital at risk. Should downside protection not be breached in 40 days the full profit of 300 dollars will be earned. That is good for 6.4% or 58% annualized. I feel good about this one.

Devour your prey raptors!

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