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 $100.83 on Dec 6, 2018.
For more conservative investors, look at a covered call using the Jan 18, 2019 $100 call for a net debit of about $97.12. This trade will return 2.95% (25.67% annualized, for comparison purposes only) as long as the stock closes above $100 at expiration. JM Smucker can fall 3.66% before causing a problem.
For investors with a higher appetite for risk, consider a diagonal spread with a Jan 17, 2020 $60 call taking the place of the long stock position and the same short position in the Jan 18, 2019 $100 call. This trade only costs about $38.59 to get into and the rate of return increases to 3.62% (25.67% annualized, for comparison purposes only) but the downside protection falls to 2.21%.