YUM Stock 2012 Trades

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YUM Stock has only been in my portfolio since 2009. YUM Stock symbol is YUM and it trades on the New York Stock Exchange. YUM Brands operates fast food outlets in 120 countries and territories around the world. It has three main concepts of KFC, PIZZA HUT and TACO BELL.

YUM Brands is a profitable company in the Cyclical Consumer Goods & Services sector and Restaurants industry. Earnings per share is growing but not as rapidly as in prior years. This could be a result of the maturing of the company as well as the slow down in Asian countries where YUM has a prominent position. Overall presently analysts are more negative than positive about YUM Stock and YUM Brands in general. When YUM Stock entered my portfolio in 2009 it was growing its market share along with growing its revenue. That position has changed somewhat and I remain wary of put selling at too high a valuation in YUM Stock.

Meanwhile YUM still has one of the highest ROEs of companies in the Restaurants industry and has a profit margin of 11.81% and I see no reason to stop put selling against Yum Stock.

To learn more select this YUM Stock link to view Yum Brands investors relations pages. The investment strategy for YUM Stock is put selling at what I believe is fair value and if assigned shares, collect the dividend while selling covered calls to be exercised out of the stock.  I am not interested in holding YUM Stock for more than a few months at best so I will probably sell in the money covered calls if assigned shares of YUM Stock. Read the YUM Stock Profit and Income Trades Articles Index

Review YUM Stock Trades For 2011
Review YUM Stock Trades For 2010
Review YUM Stock Trades For 2009

YUM Stock Trades For 2012

Current YUM Stock Status – Year 4

YUM STOCK TRADE STATS:
Capital Currently In Use:
$148,794.50
Income Earned in 2012: $25370.00
Total Income Earned Since Trade Started In 2009: $39594.75
Total Of My Own Capital Required If All Naked Puts Were Assigned: $109199.75
Number Of Shares If All Naked Puts Were Assigned: 2500
Share Price Valuation (Total Capital Required/Number of shares): $43.67


Date Stock At
Time Of
Trade
Action Taken (All Figures Are US Dollars)
ACTIVE TRADES ARE HIGHLIGHTED
Comm. Shares
Held
Capital
In Use
Gain/Loss Total
Income
Dec 20 2011 58.12 Final YUM Stock Trade for 2011 / Sold 10 Naked Puts 21JAN12 $55 for .56 (status: expired) 19.50 55019.50 540.50 14224.75
END OF 2011 TRADES

Jan 4 2012 58.65 Sold 10 YUM Stock Naked Puts 18FEB12 $60 for $2.58 (status: expired) 19.50 60019.50 2560.50 16785.25
Jan 20 2012 62.48 January Options Expiry: 10 Naked Puts 21JAN12 $55 expired
Jan 20 2012 62.48 Sold 10 YUM Stock Naked Puts 17MAR12 $62.50 for $1.88 (status:expired) 19.50 62519.50 1860.50 18645.75
Feb 15 2012 63.50 Sold 10 YUM Stock Naked Puts 17MAR12 $62.50 for $1.05 (status:expired) 19.50 62519.50 1030.50 19676.25
Feb 17 2012 65.25 Feb Options Expiry: 10 Naked Puts 18FEB12 $60 expired
Mar 16 2012 68.40 March Options Expiry: 20 Naked Puts Mar $62.50 expired
Comments: With YUM Stock now over $68.00 I believe the stock is overvalued and I will stop put selling at present.
May 21 2012 67.65 Sold 10 YUM Stock Naked Puts 16JUN12 $62.50 for $.70 (status:BTC for .24) 19.50 62519.50 680.50 20356.75
May 21 2012 67.65 Bought 500 shares of YUM Stock for $67.65 7.00 500 (33832.00)
May 24 2012 71.00 Sold 500 shares of YUM Stock for $71.00 7.00 0 35493.00 1661.00 22017.75
May 29 2012 71.00 Bought to close 10 YUM Stock Naked Puts 16JUN12 $62.50 for .24 19.50 (220.50) 21797.25
June 1 2012 64.70 Sold 10 YUM Stock Naked Puts 16JUN12 $60.00 for $.80 (status:BTC for .14) 19.50 60019.50 780.50 22577.75
June 4 2012 63.00 Bought 500 shares of YUM Stock for $63.00 7.00 500 (31507.00)
June 7 2012 68.00 Sold 500 shares of YUM Stock for $68.00 7.00 0 33993.00 2486.00 25063.75
June 7 2012 68.00 Bought to close 10 YUM Stock Naked Puts 16JUN12 $60 for .14
Comments: To understand the trades from May 21 to June 7, read this YUM Stock article.
19.50 (159.50) 24904.25
June 11 2012 62.45 Bought 10 Call Options 16JUN12 $60.00 for $3.35 19.50 (3369.50)
June 11 2012 62.45 Sold 10 Naked Puts 21JUL12 $57.50 for $1.25 (status: expired) 19.50 57019.50 1230.50 26134.75
June 11 2012 62.45 Sold 10 Naked Calls 21JUL12 $67.50 for $1.59 (status: closed)
Comments: It is rare when I do a credit spread on a stock but YUM Stock lends itself to this spread as the weakness in the stock and fear among investors that it is moving lower has produce a very good trade opportunity. To understand this trade read this extensive article on Trading Options on YUM Stock.
19.50 67519.50 1570.50 27705.25
June 15 2012 65.00 To understand the trades from June 15 2012 read this article which explains the exercise I did on my YUM Stock calls.
Exercised 10 Calls options on YUM Stock at $60.00 – sold 1000 shares of stock at $65.00
Total earnings were $5,000.00 less 3369.50 (cost of purchasing the calls) less commissions
27.00 1603.50 29308.75
June 15 2012 65.00 Bought to close 21JUL12 YUM Stock naked calls $67.50 for $1.10 19.50 (1119.50) 28189.25
June 28 2012 63.00 Sold 10 YUM Stock Naked Puts 21JUL12 $57.50 for .56  (status: closed for .19)
Comment: To understand this YUM Stock trade read this article.
19.50 57519.50 540.50 28729.75
June 29 2012 61.62 Bought 500 shares of YUM Stock at $61.62  (status: sold for $62.50) 7.00 500 (30817.00)
June 29 2012 61.62 Sold 5 Naked Puts 21JUL12 $57.50 for .71 (status: closed for .19) 13.25 28763.25 341.75 29071.50
June 29 2012 62.60 Sold 500 shares of YUM Stock for $62.60
Comment: To understand the trades for June 29 read this YUM Stock article.
7.00 0 31293.00 476.00 29547.50
July 12 2012 61.25 Bought 500 shares at $61.25 (status: sold for $62.50) 7.00 500 (30632.00)
July 12 2012 62.50 Sold 500 shares for $62.50 7.00 0 31243.00 611.00 30158.50
July 13 2012 64.70 Bought to close 15 naked puts 21JULY12 $57.50 for .19 25.75 (310.75) 29847.75
July 24 2012 62.35 Bought 500 shares of YUM Stock at $62.35 7.00 500 (31182.00)
July 24 2012 62.35 Sold 5 Naked Puts YUM Stock 18AUG12 $60 for .66 13.25 30013.25 316.75 30164.50
July 24 2012 66.70 Sold 500 shares of YUM Stock at $66.70 7.00 0 33343.00 2161.00 32325.50
Aug 2 2012 64.28 Sold 10 YUM Stock Naked Puts 18AUG12 $62.50 for .65 cents
Comments: To understand this trade read this YUM Stock article on Put Selling dips in the stock.
19.50 62519.50 630.50 32956.00
Aug 14 2012 65.66 Sold 10 YUM Stock Naked Puts 22SEP12 $62.50 for .79 (status: expired)
19.50 62519.50 770.50 33726.50
Aug 17 2012 66.10 August Options Expiry: Aug $62.50 and Aug $60 naked puts expired
Aug 23 2012 64.40 Sold 5 YUM Stock Naked Puts 20OCT12 $60.00 for $1.15 (status: expired)
13.25 30013.25 561.75 34288.25
Aug 24 2012 63.00 Sold 10 YUM Stock Naked Puts 22SEP12 $60.00 for .50 (status: expired)
19.50 60019.50 480.50 34768.75
Aug 24 2012 63.00 Sold 10 YUM Stock Naked Puts 20OCT12 $57.50 for .90 (status: expired)
19.50 57519.50 880.50 35649.25
Sep 21 2012 68.52 Sept Options Expiry: 10 YUM Stock $62.50 and 10 YUM STOCK $60 naked puts expired
Sep 28 2012 64.70 Sold 10 YUM Stock Naked Puts 19JAN13 $57.50 put strike for $1.17 19.50 57519.50 1150.50 36799.75
Oct 19 2012 70.09 October Options Expiry: Oct $60 and $57.50 naked puts expired
Oct 23 2012 69.20 Sold 5 naked puts 22DEC12 $62.50 for .59 (not change in commission rates now $1.00 a contract plus $5.00 base)
Comments: I sold just 5 naked puts as I am hoping the stock will fall lower and allow me to sell additional puts at the $60 to $62.50 strike level for better put premiums. (status: expired)
10.00   (31260.00) 285.00 37084.75
Nov 30 2012 66.88 Sold 10 naked puts 19JAN13 $60.00 put strike for .70
To Understand this Put Selling trade following today’s big drop read this article.
15.00 (60015.00) 685.00 37769.75
Dec 6 2012 65.88 Bought 500 shares YUM STOCK for Bollinger Bands Strategy Trade
Comment: To understand this trade read this article
5.00 (32945.00)
Dec 13 2012 68.80 Sold 500 shares YUM STOCK ending Bollinger Band Strategy Trade
Comments: To understand the reason for ending this trade read this article.
5.00 34395.00 1450.00 39219.75
Dec 20 2012 65.90 Sold 5 naked puts YUM Stock 19JAN13 $62.50 for .77 10.00 31260.00 375.00 39594.75
Dec 21 2012 63.88 Dec Options Expiry: $62.50 naked puts expired

 

  • mule

    A better symbol for YUM would be YUK.

  • A reflection of the fast food industry perhaps? LOL

  • Barbara

    Teddi,

    Did you trade YUM at all in 2013?

  • Lots of trades but I have not had time to get them up to date. I will do it as soon as possible.
    Teddi

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  • Bill

    Hi Teddi…Just checking in if you’ve had a chance to post 2013 YUM trading history. Do you have any open trades now? YUM has been in a range for the past 9 days since the sell off. Does this establish support in your view? Thanks!

  • Thanks Bill
    I will get them updated for you. I have continued to sell puts in the present weakness.
    Teddi