Market Cap 54.2B
Revenue (FYR) $49.2B
EPS (TTM) $1.42
Shares Out. 1.7B
Book Value $20.50
Div/Share $1.16
Payout Ratio 82x
P/E 21.8x
Price/Sales (FYR) 1.1
P/Cash Flow (TTM) 13.8x
Profit Margin 5.07%
Debt To Capital 44.42%
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) -
2011
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%
YEAR
3: 2010 Goal for 2010: 12%
Strategy: Sell Naked Puts Until Assigned BY JUNE 2010 NO MORE
CAPITAL IS REQUIRED AS THE STRATEGY HAS SUCCEEDED
AND ALL THE CAPITAL REQUIRED IS THAT OF OTHER
PEOPLE'S MONEY
Capital In Use At End
Of 2010
14,500.00
Income
Earned in 2010
9901.50
Return On Capital For
2010
68.28%
YEAR 4: 2011 Goal for 2011: 12%
Strategy: Sell Naked Puts Until Assigned
Capital Currently In Use
33019.25
Income Earned in 2011
2633.75
TOTAL INCOME EARNED
TO DATE
17800.75
Total Of My Own Capital
Required
15218.75
Number Of Shares if
assigned
1000
Share Price Valuation
(Total Capital Required/Number of shares)
15.22
TRADE COMMENCED Oct 6
2008
GOAL FOR 2011:
12%
ONGOING STRATEGY
- SELLING NAKED PUTS UNTIL ASSIGNED * ACTIVE TRADES ARE HIGHLIGHTED
IN YELLOW
Jan 3 11
31.67
BTC 5 NP JAN 29 @ .05
13.25
(38.25)
15914.00
Jan 10 11
30.97
STO 5 NP FEB 30 @ .44
1.4
13.25
206.75
16120.75
Jan 21 2011:
FLATLINE: Since early December the stock has almost
flatlined. But if I look careful I can see that since the
end of December the stock is clinging more to the lower
Bollinger than the Upper. This is telling me that the next
move may be lower for Kraft. It;s worth waiting a few days
before selling more naked puts.
Jan 21 11
31.35
Expiry 5 NP Jan 30 expired
16120.75
Jan 27 2011:
Here I am just a few sessions later and the stock has
fallen. I could wait but Kraft tends to stay in a range. If
I sell the March $30 put today I will get a great return as
I am going out almost two months. Meanwhile if the stock
falls further I am comfortable know that it will probably
stay within it's normal range. Therefore if it should fall
below $30.00 I can consider selling 5 more puts to $29.00
and holding onto the $30.00 as the stock will probably trend
around that level.
Jan 27 11
30.65
STO 5 Naked Puts Mar 30 @ .62
2.0%
13.25
296.75
16417.50
Feb 11 2011: The
stock took a bit of a tumble today and is reaching into the
low end of its range. I have a large margin available for
this stock so even though I am hold Feb 30 naked puts, I am
selling in Apr 29 for more income. It's comforting to have a
good chart to fall back on and keep watching. Kraft keeps a
tight range and I see not cause for concern.
Feb 11 11
30.35
STO 5 Naked Puts Mar 29 @ .57
1.96
13.25
271.75
16689.25
Feb 18 11
32.92
Expiry: 5 Naked Puts Feb 30 expired
Feb 18 2011:
Expiry today. As I know this stock stays in a trading
range I can select to sell the $30 strike for Mar or go to
$29.00 for April since I am already holding Mar 30 and 29
puts at this point.
BTC 5 Naked Puts Apr 29 @ .03
COMMENTS: CLOSED both positions. As per my strategy
of the cautious bull, it is worth closing these
naked puts early when I am able to do wo for
pennies. Presently I will wait to see if the stock
pulls back over the next week or so and then sell
naked puts again.
