For a hedged play on Sysco (SYY) MarketIntelligenceCenter.com’s patented trade-picking algorithms selected a May 17, 2019 $60 covered call for a net debit in the $58.15 area. That is also the break-even stock price for the covered call. This trade will return 3.16%, or 9.16% annualized (for comparison purposes only), in 126 days. This covered call also provides 8.06% downside protection.
A lower-cost play on Sysco would use a longer term call option in place of the long position in the stock. Look at the Jan 17, 2020 $45 call and the same sold call for a net debit of $14.09.This trade only has 6.57% downside protection, but the assigned return rate rises to 6.38% or an annualized rate of 18.49% (for comparison purposes only).
The current 52-week low is $56.01 and the 52-week high is $75.98. Sysco stock has been showing support around $61.59 and resistance in the $64.11 range. The stock closed Jan 10, 2019's trading session at $63.25.