Bull Call Spread 3M (MMM) With Yield Up To 187%

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I bought a bull spread in MMM.

music selection:  “Crazy On You” — Diamante

weigh-in:  207.6 (1.4) – 11 consecutive weeks of progress!

The 3M company is a Dividend Aristocrat and big slow moving large cap. Year to date the stock chart shows a strong uptrend. I think it is a great time for a bull call spread. With shares trading at 206.86, I bought the 195/200 strikes bull call spread for 4.15 a share (12 spreads). I put 4,980 in capital at risk over 40 days. The trade enjoys 3.32% downside protection before profits are threatened. Should that not be breached, I will earn the full profit of 1,020 on the trade. That is good for 20.5% or 187% annualized.

I have five spreads expiring in 12 days. All are in the money and should that condition persist, I will earn 12,065 in profits on closed positions for the month of May. A good month!

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