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. KRAFT TRADES BY YEARS VIEW KFT-2011 TRADES VIEW KFT-2010 TRADES VIEW KFT-2009 TRADES VIEW KFT-2008 TRADES
ALL PORTFOLIOS INDEX U.S. STOCKS RETIREMENT PORTFOLIO CANADIAN STOCKS   CURRENT U.S. STOCK PORTFOLIO INDEX AT+T CLOROX COCA COLA INTEL CORPORATION JOHNSON & JOHNSON KRAFT FOODS MCDONALDS MERCK & COMPANY MICROSOFT NUCOR CORPORATION PEPSICO SPYDER ETF VISA EXXON MOBIL YUM! BRANDS   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.
Dec 23 09	27.36	Sold 10 Naked Puts Mar 25 @ .37	1.4			19.50			350.50	6050.75
		Return for Year 2009 - $5265.50 = 20.10%

KRAFT TRADES BY YEARS VIEW KFT-2011 TRADES VIEW KFT-2010 TRADES VIEW KFT-2009 TRADES VIEW KFT-2008 TRADES