Microchip Technology Inc (MCHP) presents a trading opportunity that offers a 6.46% return in just 140 days.

A covered call on Microchip Technology at the $47.00 level expiring on Apr. '16 offers an assigned return rate of 6.46% or 16.83% annualized. This trade offers 6.36% downside protection, and offers some profit so long as the stock closes above $44.15 at expiration.

Microchip Technology has traded between $37.77 and $52.44 over the last 52 weeks and traded between $46.88 and $47.42 Wednesday. Support for the stock has been near $46.61 lately and resistance has been around $47.69.