I bought spreads on ROST.
music selection: “Breakin’ Free” — Tesla
weigh-in: 217.8 (0.2)
Ross Stores (ROST) is a discount retailer that is holding up well against Wal-Mart and Amazon. They are a Dividend Aristocrat with 25 consecutive years of distribution increases. It is a slow moving large cap (42B) making it an ideal candidate for in the money bear put spreads.
The chart shows a period of consolidation with neither an uptrend or downtrend year to date. With shares trading at 120.16, I bought the 130/135 strikes bear put spread (11 spreads) for 4.2964 per share at the 16APR2021 expiry. I put 4,726 of capital at risk in the trade which will be in force for about 47 days. I enjoy 8.19% downside protection before my maximum profit of 774 dollars is threatened. That is good for 16.4% over 47 days or 127% annualized.
Devour your prey raptors!