June 8, 2020 - MDT Alert (MKC)

Today, I would like to make one more suggestion and it is on a stock that reports on June 25th.

The stock is McCormick & Co., Inc. (MKC).

MKC is trading at $172.46 as I write this.

I am going to recommend a debit spread using the front month June options.

Here is the trade.

Buy to Open June 19th - $175.00 call @ $2.30

Sell to Open June 19th - $180.00 call @ $0.80

The net debit will be $1.50 per spread, with a maximum gain of $3.50 per spread.

Based on the nominal portfolio, limit the trade to 4 spreads or 0.6% of the portfolio.

The trade allocation is small because I am suggesting you trade the front month contracts.

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