PepsiCo Stock 2012 Trades (PEP)

PepsiCo Stock has been in and out of my portfolio for more than 25 years. PepsiCo Stock symbol is PEP. PepsiCo is a profitable Nonalcoholic Beverages company on the New York Stock Exchange. It has a global bevcerage, snack and food brand that is widely known and bought. It is a non-cyclical company which means that it realy does not have a period each year when earnings drop off. The company is in 200 countries and every continent. PepsiCo Stock has paid a dividend since 1952 and increased it annually for over 39 years. Book value in January 2012 was $13.16 and cash flow was $5.85 a share. Price to earnings was 16 times which is reasonable and gross margin was 52.59% and profit margin 9.72%. The annual dividend is $2.06 which as of Jan 2012 was 3.2%. PepsiCo is a great company and I have enjoyed substantial profits with PepsiCo Stock over many years. To learn more about this terrific company select this PepsiCo Stock link to visit PepsiCo Investor Relations.  The investment strategy remains the same as the last 3 years, put selling. Through using support and resistance charting I sell puts at points of where I believe there is support in Pepsico Stock when the stock pulls back near those points. If assigned shares I plan to sell covered calls until exercised out of shares and then repeat the process. A lot of investors prefer more volatile stocks than PepsiCo stock for put selling. However I prefer stocks like PepsiCo stock as they tend to not have as many whipsaws and stay within a more defineable range. It is this range that I like to sell puts and covered calls against.

Review PepsiCo Stock Trades For 2011
Review PepsiCo Stock Trades For 2010
Review PepsiCo Stock Trades For 2009

PepsiCo Stock Trades For 2012

Current PepsiCo Stock Status – Year 4
Return for 2012: 19.76%

Capital Currently In Use:  $102533.25
Income Earned in 2012:     $20266.75
Total Income Earned Since Trade Started In 2009: $34971.00
Total Of My Own Capital Required If All Naked Puts Were Assigned:  $67562.25
Number Of Shares If All Naked Puts Were Assigned: 1500
Share Price Valuation (Total Capital Required/Number of shares):  $45.04


Date Stock At
Time Of
Trade
Action Taken (All Figures Are US Dollars) Comm. Shares
Held
Capital
In Use
Gain/Loss Total
Income
 Dec 19 2011  64.37  Final Pepsico Stock Trade for 2011 / Sold 5 Naked Puts 18FEB12 $60 for .61 (status: expired)  13.25  30013.25  305.00  14704.25
END OF 2011 TRADES

Jan 17 2012 64.70 Bought 1000 PepsiCo Stock shares  (status: sold at 66.70) 7.00 1000 64707.00
Jan 17 64.70 Sold 5 Naked Puts 18 FEB12 $62.50 for .31 (status: expired) 13.25 31263.25 141.75 14846.00
Jan 26 66.70 Sold 1000 PepsiCo Stock shares 7.00 0 1986.00 16832.00
Feb 14 63.38 Bought 500 PepsiCo Stock shares (status: sold at 63.50)
Comments: Select this link to read about this PepsiCo Stock trade and why it is being implemented
7.00 500 31697.00
Feb 14 63.38 Sold 5 Naked Puts 17MAR12 $62.50 @ .74 (status: expired) 13.25 31263.25 356.75 17188.75
Feb 15 63.00 Sold 5 Naked Puts 17MAR12 $62.50 @ .88 (status: expired) 13.25 31263.25 426.75 17615.50
Feb 16 62.80 Sold 5 Naked Puts 17MAR12 $62.50 @ 1.01 (status: expired) 13.25 31263.25 491.75 18107.25
Feb 17 62.68 Feb Options Expiry: All Feb Put Options expired
Feb 17 62.40 Sold 5 Naked Puts 17MAR12 $62.50 @ 1.08 (status:expired) 13.25 31263.25 526.75 18634.00
Feb 17 62.48 Bought 3000 PepsiCo Stock shares (status: sold at 63.50) 7.00 3500 187447.00
Feb 17 62.45 Sold 5 Naked Puts 21APR12 $60.00 for .51 (status: expired) 13.25 30013.25 241.75 18875.75
Feb 17 62.45 Sold 20 Naked Puts 17MAR12 $60.00 for .30  (status: BTC for .03) 32.00 120032.00 568.00 19443.75
Feb 24 63.50 Sold 3500 PepsiCo Stock shares 7.00 0 (222243.00) 3099.00 22542.75
Mar 6 62.75 Bought to close 20 Naked Puts 17MAR12 $60.00 for .03Comments: Select this link to read about this PepsiCo Stock trade and why I closed my Mar $60 puts early. I also explain the strategy I am using to determine purchasing more stock after just recently selling 3500 shares on Feb 17. I am using support and resistance points for put selling and purchasing shares. 32.00 (92.00) 22450.75
Mar 7 62.25 Bought 2000 PepsiCo Stock shares (status: sold 63.90) 7.00 2000 124507.00
Mar 7 62.25 Sold  10 Naked Puts 21APR12 $60.00 for .56  (status: expired) 19.50 60019.50 528.00 22978.75
Mar 12 63.90 Sold 2000 PepsiCo Stock shares for $63.90 7.00 0 (127793.00) 3286.00 26264.75
Apr 10 64.90 Sold 10 Naked Puts 19MAY12 $62.50 for .68 (status: expired) 19.50 62519.50 660.50 26925.25
May 18 68.12 May Options Expiry: $62.50 Puts Option Expired
Jun 5 66.80 Sold 10 PepsiCo Stock Naked Puts 21JUL12 $65.00 for .78 (status: expired) 19.50 65019.50 760.50 27685.75
Jun 5 66.80 Bought 500 shares PepsiCo Stock for $66.80  (status: sold for $69.55) 7.00 500 (33407.00)
Jun 15 69.55 Sold 500 shares PepsiCo Stock for $69.55 7.00 0 34768.00 1361.00 29046.75
Jun 25 68.25 Sold 5 PepsiCo Stock Naked puts 18AUG12 $67.50 for $1.22 (expired) 13.25 33763.25 596.75 29643.50
Jul 20 69.96 July Options Expiry: $65 naked puts expired
Jul 24 68.70 Sold 5 PepsiCo Stock Naked Puts 22SEP12 $67.50 for $1.25 (status expired)
13.25 33763.25 611.75 30255.25
Aug 13 71.90 Sold 5 PepsiCo Stock Naked Puts 20OCT $67.50 for $ .88 (status: expired)
13.25 33763.25 426.75 30682.00
Aug 17 73.39 August Expiry: 5 August $67.50 puts expired
Sep 5 71.45 Sold 5 PepsiCo Stock Naked Puts 19JAN13 $67.50 for $1.15 (status – carried into 2013)
13.25 33763.25 561.75 31243.75
Sep 21 70.55 Sept Options expiry 5 Naked Puts $67.50 expired
Oct 17 70.02 Sold 3 PepsiCo Stock Naked Puts 17NOV12 $70.00 for $.88 (status: assigned at $70.00 Nov 16)
10.75 21010.75 253.25 31497.00
Oct 17 70.09 Bought 500 shares of PepsiCo Stock for a bounce
Comments: To understand this trade read this PepsiCo Stock article.
7.00 ($35007.00)
Oct 19 70.55 Sold 500 shares at $70.55 7.00 35268.00 $261.00 31758.00
Oct 19 69.88 October Options Expiry $67.50 puts expired
Nov 16 68.31 November Options Expiry 3 NOV $70 puts assigned at $70.00 (status: Sold Dec 17 for $70.25) 12.00 300 (21012.00)
Nov 16 67.95 Bought 500 shares of PepsiCo Stock at $67.95 (status: sold Dec 17 for $70.25)
Comments Rather than rolling the Nov $70 puts I decided to be assigned the 300 shares and I added another 500 shares through this purchase. I think PepsiCo is fairly valued at $70 to $65 and definitely undervalued below $65
5.00 800 (33980.00)
Dec 5 69.71 Dividend 800 shares X .5375 430.00 32188.00
Dec 17 70.25 Sold 800 shares of PepsiCo Stock for $70.25 5.00 0 56195.00 1203.00 33391.00
Dec 28 68.15 Sell To Open (STO) Put Selling 5 PepsiCo Stock Naked Puts 19JAN13 $67.50 Strike for $.85 (status: carried into 2013)
10.00 33760.00 415.00 33806.00
Dec 28 68.15 Sell To Open (STO) Put Selling 5 PepsiCo Stock Naked Puts 19JAN13 $70.00 Strike for $2.35 (status: carried into 2013)
10.00 35010.00 1165.00 34971.00
End of 2012 – This trade is continued into 2013 – Select this link to move to PepsiCo Stock Trades in 2013
  • Me2021

    Hi Teddi,
    Great Strategy on PEP. I am assuming that you want to be in and out of your capital utilised as fast as possible. Is that the reasoning why you are not going out and selling further put options on PEP, such as the July 60s or the October 60s? As you also owned shares, you did not sell calls against them. Is that also due to you just wanting to have your capital back as fast as possible and taking the profits while it was there?

  • Thanks for your comments. Right now I see no reason to be selling far out of the money puts on PepsiCo Stock. With PepsiCo Stock still under some stress there is lots of opportunity for short term put selling.
    The PepsiCo stock trades are purely based on support and resistance. If the stock falls to where I believe support is, namely around $62.50, I buy the stock when my technicals point to a bounce. I then sell that stock when the bounce occurs. I don’t get the top very often but my market timing tools are good at picking the bottoms!
    Presently I have no interest in owning covered calls on PepsiCo Stock since the volatility in the stock and the range are enough to earn decent returns without covered calls and the need to tie up my money for any length of time.
    Teddi