The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center are highlighting two trades on JM Smucker (SJM) today after it closed at $106.51 on Jun 6, 2018.
For more conservative investors, look at a covered call using the Jul 20, 2018 $105 call for a net debit of about $101.51. This trade will return 3.42% (29.09% annualized, for comparison purposes only) as long as the stock closes above $105 at expiration. JM Smucker can fall 4.69% before causing a problem.
For investors with a higher appetite for risk, consider a diagonal spread with a Jan 18, 2019 $80 call taking the place of the long stock position and the same short position in the Jul 20, 2018 $105 call. This trade only costs about $22.90 to get into and the rate of return increases to 9.17% (29.09% annualized, for comparison purposes only) but the downside protection falls to 3.39%.