YUM Stock has been in my portfolio since 2009. YUM Stock symbol is YUM and it trades on the New York Stock Exchange. YUM Brands operates fast food outlets in 120 countries and territories around the world. It has three main concepts of KFC, PIZZA HUT and TACO BELL.
Since 2009 YUM Brands has provided stellar returns to my portfolio. The majority of the income earned is from Put Selling but I have done a few Bollinger Bands Strategy Trades in 2013. These are the trades done for 2013.
YUM Stock 5 Year Chart
Looking at the 5 year YUM Stock chart you can see why this stock has been a winner for Put Selling. The stock has been in an uptrend since 2008 when it hit a low of $21.50 during that vicious bear market. By October 2013 YUM Stock was trading for $71.53 for a 5 year return of 232% for a 46% average annual gain. This is far better than my Put Selling trades have brought in but at the same time I have not had to worry about the stock being assigned. Meanwhile the dividend in 2008 was .19 cents and by October 2013 it is up 76% to .335. Yum Stock is a winner. There are some people developing though. The YUM Stock chart shows a wedge pattern developing. The stock has been stuck at a high of around $74 since early 2012. The wedge pattern won’t last much longer. Either YUM Stock will move higher and break through resistance at $74 or it will pull back and end the rising uptrend.
YUM Stock Investment Strategy
The investment strategy for YUM Stock (YUM Stock) is Put Selling at what I believe is fair value and if assigned shares, collect the dividend while selling covered calls to be exercised out of the stock. The second strategy in use is the Bollinger Bands Strategy Trade which if you are a FullyInformed member you can review through this article. Between these two strategies the returns have been very profitable for YUM Stock with a 15% return in 2012. This stock has provided double-digit returns annually although not to the extent of the rise in the stock.
YUM Stock Trades For 2013 – Year 5 |
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| YUM Stock TRADE STATS: Capital Currently In Use: $97530.00 Income Earned in 2013: $28112.50 Total Income Earned Since Trade Started In 2009: $67707.25 Total Of My Own Capital Required If All Naked Puts Were Assigned: $29822.75 Number Of Shares If All Naked Puts Were Assigned: 1500 Share Price Valuation(Total Capital Required/Number of shares): $19.88 |
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| REVIEW PRIOR YEARS: | |||||||
| Review Yum Stock 2012 Trades | |||||||
| Review Yum Stock 2011 Trades | |||||||
| Review Yum Stock 2010 Trades | |||||||
| Review Yum Stock 2009 Trades | |||||||
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| Date | Stock At Time Of Trade |
Action Taken (All Figures Are US Dollars) ACTIVE TRADES ARE HIGHLIGHTED |
Comm. | Shares Held |
Capital In Use |
Gain/Loss | Total Income |
| Sep 28 2012 |
64.70 | Sold 10 YUM Stock Naked Puts 19JAN13 $57.50 put strike for $1.17 (status: expired) |
19.50 | 57519.50 | 1150.50 | ||
| Nov 30 2012 | 66.88 | SSold 10 naked puts 19JAN13 $60.00 put strike for .70 To Understand this Put Selling trade following today’s big drop read this article. (status: expired) |
15.00 | 60015.00 | 685.00 | ||
| Dec 20 2012 | 65.90 | Sold 5 naked puts YUM Stock 19JAN13 $62.50 for .77 (status: expired) |
10.00 | 31260.00 | 375.00 | 39594.75 | |
| The above are the remaining trades from 2012 that expired in 2013. You can review YUM Stock 2012 Trades through this link. Total capital earned in 2012 = $25370.00 / $148,794.50 capital in use = 17% return | |||||||
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| All YUM Stock Trades Below Are in 2013 | |||||||
| Jan 9 | 64.22 | Sell To Open (STO) Put Selling 5 YUM Stock Naked Puts 16FEB13 $62.50 Strike for $0.95 (status: expired) | 10.00 | 31260.00 | 465.00 | 40059.75 | |
| Jan 9 | 64.22 | Sell To Open (STO) Put Selling 5 YUM Stock Naked Puts 16FEB13 $60 Strike for $.53 (status: expired) Comments: To understand the trades this morning read this article on Put Selling YUM Stock after hours |
10.00 | 30010.00 | 255.00 | 40314.75 | |
| Jan 18 | 65.15 | Jan Options Expiry: $57.50, $60 and $62.50 naked puts expired | |||||
| Jan 22 |
64.75 | Sell To Open (STO) Put Selling 5 YUM Stock Naked Puts 16FEB13 $62.50 Strike for $.88 (status: expired) |
10.00 | 31260.00 | 430.00 | 40744.75 | |
| Jan 25 |
64.20 | Sell To Open (STO) Put Selling 5 YUM Stock Naked Puts 16FEB13 $60.00 Strike for $.52 (status: expired) |
10.00 | 30010.00 | 250.00 | 40994.75 | |
| Jan 28 |
63.55 | Bought 500 shares of YUM Stock for $63.55 (status: sold Jan 30 for $64.50) |
5.00 | 500 | (31780.00) | ||
| Jan 30 |
64.50 | Sold 500 shares of YUM Stock for $64.50 | 5.00 | 0 | 32245.00 | 465.00 | 41459.75 |
| Feb 5 | 59.90 | Bought 500 shares of YUM Stock for $59.90 – stock collapsed this morning on earnings scare with China. This is way overdone in my opinion. Read this article that looks at Put Selling this morning. (Status: sold Apr 1 for $72.00) | 5.00 | 500 | (29955.00) | ||
| Feb 5 | 59.90 | Sell To Open (STO) Put Selling 5 YUM Stock Naked Puts 16MAR13 $60.00 Strike for $1.75 (status: expired) Comments: The collapse is not warranted in my opinion. I bought stock and sold naked puts. Read this article to understand the support level at $63 on YUM Stock at present. |
10.00 | 30010.00 | 865.00 | 42324.75 | |
| Feb 15 | 63.99 | Feb Options Expiry: $62.50, $60 naked puts expired | |||||
| Mar 15 | 70.20 | March Options Expiry: $60.00 naked puts expired | |||||
| Apr 1 | 72.00 | Sold 500 shares of YUM Stock at $72.00. The stock is trending sideways and has pulled back in from the Upper Bollinger Band. This is the stock I bought Feb 5 in the China scare. You can see now the importance of trading against support levels in stocks. | 5.00 | 0 | 35995.00 | 6040.00 | 48364.75 |
| Apr 3 | 67.25 | Sell To Open (STO) Put Selling 5 YUM Stock Naked Puts 20APR13 $65.00 Strike for $0.56 (status: expired) Comments: To understand this trade read this strategy article. |
10.00 | 32510.00 | 270.00 | 48634.75 | |
| Apr 3 | Sell To Open (STO) Put Selling 5 YUM Stock Naked Puts 18MAY13 $62.50 Strike for $0.80 (status: expired) Comments: To understand this trade read this strategy article. |
10.00 | 31260.00 | 390.00 | 49024.75 | ||
| Apr 5 | 65.35 | Sell To Open (STO) Put Selling 5 YUM Stock Naked Puts 20APR13 $62.50 Strike for $0.50 (status: expired) Comments: To understand this trade read this strategy article. |
10.00 | 31260.00 | 240.00 | 49264.75 | |
| Apr 5 | 65.35 | Sell To Open (STO) Put Selling 5 YUM Stock Naked Puts 18MAY13 $60.00 Strike for $0.76 (status: expired) Comments: To understand this trade read this strategy article. |
10.00 | 30010.00 | 370.00 | 49634.75 | |
| Apr 8 | 66.30 | Bought 500 shares of YUM Stock at $66.30 (status: sold Apr 24 for $69.55) Comments: To understand this trade read this strategy article. |
5.00 | 500 | (33155.00) | ||
| Apr 10 | Dividend declared 500 X .335 | 167.50 | 49802.25 | ||||
| Apr 10 | 66.76 | Sell To Open (STO) Put Selling 10 YUM Stock Naked Puts 12APR13 $65.00 Strike for $0.38 (status: expired) Just two days to expiry. I believe this is worth the risk of assignment. Comments: To understand this trade read this strategy article. |
15.00 | 65015.00 | 365.00 | 50167.25 | |
| Apr 12 | 67.80 | Apr 12 Options Expiry: $65 naked puts expired | |||||
| Apr 19 | 65.00 | Sell To Open (STO) Put Selling 5 YUM Stock Naked Puts 26APR13 $62.50 Strike for $0.79 (status: expired) Another weekly option trade in YUM Stock which I think will worth very well. Comments: To understand this trade read this strategy article. |
10.00 | 31260.00 | 385.00 | 50752.25 | |
| Apr 19 | 65.04 | April Options Expiry: $65, $62.50 expired | |||||
| Apr 23 | 63.55 | Bought 500 shares of YUM Stock at $63.55 (Status: Sold Apr 24 for $69.55) Comments: I am still holding shares from April 8 that I paid $66.30 for. This will help move my average cost lower. Investors are overreacting to the news out of China. This stock is undervalued at $63.55. |
5.00 | 1000 | (31780.00) | ||
| Apr 24 | 69.55 | Sold 1000 shares of stock at $69.55 Comments: Just one day later and the stock is up big as it now looks like China won’t impact quite as much as previously expected. Overreaction yesterday by investors gave me this opportunity to sell today. |
5.00 | 0 | 69555.00 | 4620.00 | 55372.25 |
| Apr 26 | 66.86 | Apr 26 Options Expiry: $62.50 naked puts expired | |||||
| May 17 | 70.16 | May options expiry: $62.50 and $60 naked puts expired | |||||
| Jun 5 | 67.90 | Sell To Open (STO) Put Selling 10 YUM Stock Naked Puts 20JUL13 $67.50 Strike for $2.00 (status: expired) Comments: I have no capital tied to YUM Stock at present and with the premiums available for July this trade is definitely worthwhile for the $67.50 put strike. |
15.00 | 67515.00 | 1985.00 | 57357.25 | |
| Jun 24 | 67.30 | Sell To Open (STO) Put Selling 5 YUM Stock Naked Puts 20JUL13 $67.50 Strike for $1.35 (status: expired) Comments: I cannot turn down this type of premium for this trade. $67.50 has enough support to hold here. |
10.00 | 33760.00 | 665.00 | 58022.25 | |
| Jul 11 | 70.50 | Sell To Open (STO) Put Selling 5 YUM Stock Naked Puts 17AUG13 $67.50 Strike for $0.82 (status: expired) Comments: To understand this trade read this strategy article. |
10.00 | 33760.00 | 400.00 | 58422.25 | |
| Jul 19 | 72.08 | July Options Expiry: $67.50 naked puts expired | |||||
| Jul 23 | 70.15 | Sell To Open (STO) Put Selling 5 YUM Stock Naked Puts 17AUG13 $67.50 Strike for $.95 (status: expired) Comments: Once again the stock is plunging lower. I remain confident the $67.50 support will contain this selling. |
10.00 | 33760.00 | 465.00 | 58887.25 | |
| Aug 13 |
72.55 | Sell To Open (STO) Put Selling 10 YUM Stock Naked Puts 21SEP13 $67.50 Strike for $0.57 (status: expired) Comments: To understand this trade read this strategy article. |
15.00 | 67515.00 | 555.00 | 59442.25 | |
| Aug 16 | 72.16 | Aug Options Expiry: $67.50 naked puts expired | |||||
| Sep 4 | 69.00 | Sell To Open (STO) Put Selling 10 YUM Stock Naked Puts 19OCT13 $67.50 Strike for $1.35 Comments: Another pullback for YUM Stock. This probably won’t reach $67.50 support. (status: BTC Oct 10 for $1.07 and rolled again in Oct 19 at $67.50 for $1.93) |
15.00 | 67515.00 | 1335.00 | 60777.25 | |
| Sep 20 | 72.09 | Sep Options Expiry: $67.50 naked puts expired | |||||
| Oct 3 | 70.30 | Sell To Open (STO) Put Selling 5 YUM Stock Naked Puts 19OCT13 $67.50 Strike for $0.77 (status: BTC Oct 10 for $1.07 and rolled to Jan 2014 at $3.95) Comments: Posted this trade on twitter. This article explains put credit spreads on YUM Stock This article discusses using straddles or strangles on YUM Stock. |
10.00 | 33760.00 | 375.00 | 61152.25 | |
| Oct 9 | 65.10 | Sell to Open (STO) Put Selling 5 YUM Stock Naked Puts 17JAN15 $62.50 put strike for $6.67 Comments: A drop of over 5% today on a drop in earnings has investors worried. This article explains why investors fail with their investments and how to become an investor prepared for stock fluctuations. |
10.00 | 31260.00 | 3325.00 | 64477.25 | |
| Oct 10 | 67.00 | BTC 15 Naked Puts YUM Stock 19OCT$67.50 put strike for $1.07 | 15.00 | (1620.00) | 62857.25 | ||
| Oct 10 | 65.70 | Sell To Open 5 Naked Puts 18JAN14 $67.50 put strike for $3.95 Comments: No plan to hold these long-term. This is just to earn some premium before January as I think the stock may end up around $65.00 by then. |
10.00 | 33760.00 | 1965.00 | 64822.25 | |
| Oct 10 | 65.70 | Sell To Open 10 Naked Puts 19OCT$67.50 put strike for $1.93 (BTC Oct 18 for .25) |
15.00 | 67515.00 | 1915.00 | 66737.25 | |
| Oct 10 | 65.69 | Bought 500 shares of YUM Stock at $65.69 (Status: Sold Oct 18 for $67.55) Comments: Day after the collapse of Yum Stock and already the stock appears to have put in a possible short-term bottom. Bought stock for a bounce back in price. |
5.00 | 500 | (32850.00) | ||
| Oct 18 | 67.50 | Sold 500 shares of YUM Stock at $67.50 Comments: Almost got out on Oct 17 but the stock didn’t quite reached $67.50 where my sell price was set. Today got taken out easily. |
5.00 | 0 | 33745.00 | 895.00 | 67632.25 |
| Oct 18 | 67.73 | Oct Options Expiry: Buy To Close (BTC) Oct 19 $67.50 puts for .25 cents | 15.00 | (265.00) | 67367.25 | ||
| Oct 18 | 66.68 | Sell To Open (STO) Put Selling 5 YUM Stock Naked Puts 16NOV13 $65 Strike for $.70 Comment: This article discusses all the trades from Oct 9 to Oct 18. |
10.00 | 32510.00 | 340.00 | 67707.25 | |
| Nov 15 | 73.98 | Nov options expiry – $65 put strikes expired | |||||
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