The decline in YUM Stock oncerned a lot of investors. Not only did the recent quarterly earnings fail to meet expectations or estimates, but then a second collapse occurred after warnings from the company that more Chinese food problems had emerged. It is tough for a lot of investors who are aiming for a good return out of YUM Stock but fail to understand that a lot of their earnings power is coming from China which despite what we may think, still does not have the food controls and inspections that are commonplace at home.
China is a growing powerhouse but it will take decades to build the type of infrastructure we take for granted. Yet I have no concerns with trading in YUM Stock as not only does this stock provide outstanding returns, but the volatility of the stock is what creates those option premiums I love to trade in and profit from.
YUM Stock Collapse
The recent collapse in YUM Stock wiped out 18.4% of the value from the high of $83.45 made July 16 to the low of $68.09 made on July 31. Yet through this decline I had absolutely no concerns because I use my color code system which I developed years ago when most of the work I did on stocks was on paper not computers.
YUM Stock collapse to Aug 18 2014
The Color Code System On Yum Stock
The color code system has allowed me to stay focused on where to be applying capital, when to apply it, when to increase capital, when to decrease it and a host of other strategies which includes everything from trading within leap options to handling core positional holdings.
For YUM Stock, the color code system has been extremely beneficial since I started using it on YUM Stock in 2009. It was this system in 2009 that told me to buy the stock when it was being dumped in the last bear market. It has been this system that has allowed me to enjoy stellar returns yearly without capital loss.
This full strategy article is 2200 words in length and will require 8 pages if printed. Once explained, investors should be able to learn how to apply this system to their own stocks to assist in timing trades and protecting their capital.
This is a YUM Stock strategy discussion for FullyInformed USA Members designed to assist in becoming a more knowledgeable investor. FullyInformed USA Members can can login directly through this link or sign in to the full members site here. Non-members can join here.
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
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