After Dec 6, 2018’s trading in Tyson Foods (TSN) MarketIntelligenceCenter.com's patented algorithms uncovered a trade that offers a 3.23% return or 28.08% on an annualized basis (for comparison purposes only), while providing 3.79% downside protection.
The trade is a Jan 18, 2019 covered call at the $57.50 level for a net debit of about $55.69. The net debit is also the breakeven point for this trade.
For a higher return, consider buying a longer-term call option, like the Jan 17, 2020 at the $37.50 level. By buying the call for $21.39 instead of paying about $57.90 for the stock, the assigned return rate for this alternate trade is 4.16%, but the stock has to finish above $56.70 when the sold call expires for this trade to be profitable.
Standard & Poor’s has a 3 STARS (out of 5) hold ranking on Tyson Foods. Technical indicators for the stock have been bearish and support and resistance have been in the area of $55.89 and $59.76, respectively.