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. 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%     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.
Feb 18 11	30.75	STO 5 Naked Puts Apr $29 @ .42	1.4%			13.25			196.75	16886.00
Mar 18 11	30.99	Expiry: 5 Naked Puts Mar 30 expired 5 Naked Puts Mar 29 expired
Mar 21 11	30.50	STO 5 Naked Puts Apr 30 @ .47	1.5%			13.25			221.75	17107.75
Mar 30 11	31.49	BTC 5 Naked Puts Apr 30 @ .04				13.25			(33.25)	17074.50
Mar 30 11	31.49	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.				13.25			(28.25)	17046.25
Sep 6 11	33.7-	Sold 5 Naked Puts Oct $32 @ .58	1.7%			13.25		16013.25	276.75	17323.00
Oct 21 11	35.20	Expiry: 5 Naked Puts Oct $32 expired
Oct 25 11	34.91	Sold 5 Naked Puts Nov $33 for .25	0.75%			13.25		16513.25	111.75	17434.75
Nov 9 11	34.65	Sold 6 Naked Puts Dec $30 for .20	0.66%			14.50		18014.50	105.50	17540.25
Dec 16 11	36.49	Expiry: 6 naked puts Dec $30 expired
Dec 19 11	36.25	Sold 10 Naked Puts Feb 33 @ .28	0.80%			19.50		33019.50	260.50	17800.75

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