Bear Spread With SYY And Yield Up To 145%

I bought a net debit spread in Sysco (SYY).

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weigh-in:  214.6 (1.2)

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First my expired positions. A covered call in KMB expired out of the money over the weekend. I collected 48 dollars in premium. I sold the 100 shares, that I originally bought for 128.98 on 16FEB2021 for 137.22. I made 824 dollars against 12,898 at risk over 41 days, good for 57% annualized.

Sysco is a Dividend Aristocrat and a big slow-moving large cap. It has a chart that has moved sideways year to date and looks like a good candidate for an in the money bear put spread. With shares trading at 80.63, I bought the 85/90 strikes bear put spread with 16APR2021 expiry for 4.65 a share (10 spreads). I have 4,650 dollars at risk over 19 days. The trade enjoys 5.42% downside protection and should that not be breached will earn 350 dollars at expiry. That is good for 7.5% or 145% annualized. I like my chances with the short-term trade.

Devour your prey raptors!

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