Market Cap 42.2B
Revenue (FYR) $40.8B
EPS (TTM) $1.43
Shares Out. 1.5B
Book Value $20.50
Div/Share $1.16
Payout Ratio 82x
P/E 20.1x
Price/Sales (FYR) 1.1
P/Cash Flow (TTM) 13.8x
Profit Margin 5.87%
Debt To Capital 38.42%
Kraft Foods Inc is a profitable Food Processing company that
trades on the NYSE. Kraft Foods Inc. (Kraft) is engaged in
manufacturing and marketing packaged food products,
including snacks, beverages, cheese, convenient meals and
various packaged grocery products. The Company has operations in more than
70 countries and sell the products in approximately 150
countries. The Company manages and operates, through three
commercial units: Kraft Foods North America, Kraft Foods
Europe and Kraft Foods Developing Markets. In Feb 2010, Kraft
completed its acquisition of Cadbury.The brands of the
Company span five consumer sectors: snacks, beverages,
cheese, grocery and convenient meals.
KRAFT FOODS INC (KFT)
- 2009
ONGOING EVALUATION
& TRADE
This is a non-retirement account. I am selling naked puts
against the stock.
This trade started in October 2008 and by June 2010 I had
made enough income to pay for 500 shares of Kraft. Rather
than accept assignment I am continuing to sell naked puts
until eventually assigned as Kraft remains in a tight
trading range making the selling of options viable. The goal
was to own shares of Kraft through other people's capital.
This goal has been realized. The objective now is to add to
that income until eventually assigned shares.
Should you find my strategy and ongoing evaluation of
this trade of value I hope you will consider a tip
for the time I spend detailing out this trade.
I have set up a Paypal account for those
who would like to donate. Thank you in advance. Remember, nothing on my site is financial advice.
They are just my ideas and opinions. Investing is risky and losses can be large. Trade
at your own risk.
Read the
terms of use
YEAR 1: 2008 - Trade Commenced Oct 2008 Goal for 2008:
2% (2 months)
Strategy: Sell Naked Puts Until Assigned
Capital In Use At End Of 2008
13,000.00
Income Earned in 2008 (2 months)
785.25
Return On Capital in 2008 (2 months)
6%
YEAR
2: 2009 Goal for 2009: 12%
Strategy: Sell Naked Puts Until Assigned
Capital In Use At End
Of 2009
25,500.00
Income Earned in 2009
5,265.50
Return On Capital For
2009
20.10%
TRADE COMMENCED Oct 6
2008
GOAL FOR 2009:
12%
ONGOING STRATEGY
- SELLING NAKED PUTS UNTIL ASSIGNED
Jan 16 09
28.64
Expiration Day 5 Jan
25.00 Puts Expired
June 15 2009
All the signs point to a lower valuation for Kraft. A sure
sign that I should heed the recent upswing as possibly
suspect and sell lower strikes. It's interesting though how
easy it is to follow a stock like Kraft. Do you notice how
few times I even need to post a chart for reference? This is
what an excellent Naked Put strategy is all about - picking
the right stock to sell the puts against.
Jan 20 09
28.22
Sell 5 Naked Puts Mar 25.00 @ .35
1.4
13.25
161.75
947.00
Mar 20 09
22.14
Expiration Day 5 Mar 25.00 Assigned
500
23.14
20.00
12520.00
12520.00
Mar 23 09
23.15
Sell 5 Covered Calls May 26.00 @ .35
1.3
13.25
161.75
1108.75
Mar 23 09
Dividend 500 X .29
1.1
145.00
1253.75
May 15 09
25.10
Expiration Day 5 May 26.00 Calls Expired
13.25
May 15 09
25.10
Sell 5 Covered Calls Jun 26 @ .40
1.5
13.25
186.75
1440.50
Jun 19 09
25.41
Expiration Day 5 Jun 26 Calls Expired
Jun 19 09
25.41
Sell 5 Covered Calls Jul 26 @ .50
1.9
13.25
236.75
1677.25
Jun 26 09
Dividend 500 X .29
1.1
145.00
1822.25
Jul 17 09
27.43
Expiration Day 5 Jul 26 Calls Exercised
3.6
0
20.00
(12980.00)
0.00
460.00
2282.25
Jul 20 09
27.40
Sell 5 Naked Puts Sep 25.00 @ .40
1.6
13.25
186.75
2469.00
Aug 19 09
28.63
Bought back 5 Naked Puts Sep 25 @ .06
-0.24
13.25
(43.25)
2425.75
Return to Aug
for 2009 - 12.6% - additional capital added 1640.50 /
13000.00
Aug 24 09
28.69
Sold 10 Naked Puts Oct 26 @ .30
1.1
19.50
280.50
2706.25
Sep 18 09
26.73
Expiration Day 5 Sep 25.00 Naked Puts Expired
Sep 21 09
26.88
Sold 10 Naked Puts Nov 25 @ .55
2.2
19.50
530.50
3236.75
Oct 1 09
26.01
Bought back 10 Naked Puts Oct 26 @ .40
-1.5
19.50
(419.50)
2817.25
Oct 1 09
26.01
Sold 10 Naked Puts Nov 26 @ 1.00
3.8
19.50
980.50
3797.75
Nov 4 09
26.67
BTC 10 Naked Puts Nov 26 @ .25
-0.96
19.50
(269.50)
3528.25
Nov 4 09
26.67
BTC 10 Naked Puts Nov 25 @ .05
-0.20
19.50
(69.50)
3458.75
Nov 4 09
26.67
Sold 10 Naked Puts Dec 26 @ 1.15
4.4
19.50
1130.50
4589.25
Nov 4 09
26.67
Sold 10 Naked Puts Dec 25 @ .60
2.4
19.50
580.50
5169.75
Dec 18 09
27.01
Expiration: Naked Puts Dec 25 and Dec
26 expired
Dec 21 09
26.97
Sold 10 Naked Puts Feb 26 @ .55
2.1
19.50
530.50
5700.25
Dec 21 2009
The end of the year and end of another successful naked put
strategy on Kraft. The secret which I have mentioned
repeatedly is that Kraft stays in a range making the
selecting of strikes a lot easier. As well should I pick the
wrong strike and the stock fall, I can wait for the stock to
recover and put my in the money naked puts back out of the
money. Looking at the chart below, I can readily see the
simple trading range that Kraft has been in for the past 6
months.
