YUM stock has been a solid performer for the past two years in my portfolio. Today, Sep 29 2011, the stock got hit hard with a drop of more than 7% about a half hour before the market close. Volume on YUM Stock has been heavy with more than 6 million shares trading. On an average day the stock trades about 4.1 million shares. Analysts consensus had priced the stock at a value of $59.75, but as we often see, analysts and reality are two different worlds. YUM Stock is trading at 21.1X / Read More
YUM STOCK – Stock Selection Process : This article was originally written on August 11 2009 to explain why I chose YUM Stock for my US Portfolio for selling put contracts against. I am including it again as I have recently updated my YUM Stock analysis as of September 21 2011. To begin it is important to remember the plan for YUM Stock: GOAL: My goal for YUM stock is to collect income from naked put writing. STRATEGY: Selling put contracts. If assigned sell covered calls to get exercised out of YUM stock. / Read More
With Monday’s bear market collapse I am glad to welcome YUM Stock back to my US Portfolio. As long term readers might recall, in May of this year I sold puts on YUM stock and when they expired I indicated that YUM was over valued in my opinion and I would discontinue selling puts until the stock pulled back. Well the stock has fallen over the past sessions and with today’s market collapse it is below $50.00. This makes for an excellent put trade and with volatility almost at 50.00 today on the / Read More
Yum stock versus McDonalds stock is my explanation of where I think YUM Stock is heading and why I am continuing with my writing puts strategy on Yum Stock. YUM STOCK EARNINGS UP 7% After hours, the earnings came out on YUM Brands. They are up 7% or .63 cents a share before a special one time cost which reduces the earnings to .54. YUM’s earnings continue to be good but here is why I prefer my strategy over owning any shares. I am sure earnings like those today will jump YUM Stock / Read More
Yum stock March options expiry saw the stock close at $50.50. The Ultimate Oscillator reading which earlier told me to sell my purchased shares was correct. Sometimes the technical tools work out and the trade is a winner. The decision now is what put strike I should write puts at, keeping in mind that just a month ago Yum stock was having some trouble. If I sell puts in Yum stock too high I could be assigned shares, which would be harmful to my overall strategy of earning income without being assigned shares / Read More
Yum stock has had a nice run back up. It was just a short few session ago that it looked like the stock was going to fall further, but the Ultimate Oscillator indicated that an oversold condition had emerged on Yum Stock. I commented on this back on January 31 in my YUM Stock ongoing strategy comments. Every day I have checked the YUM Stock chart. The rise from $46.40 to over $51.00 has been dramatic. YUM Stock – Using The Ultimate Oscillator To Time My Exit: The chart below shows the recent / Read More
YUM Stock Decline Presents An Opportunity: Since the start of January Yum Stock has been in decline. Earlier this month there was a decline to around $48.00 and then Yum Stock had a two-day run up which failed and as you can see in the chart below, the stock has declined ever since. Yesterday the stock fell dramatically and made a new lower low for the past few months. Normally with YUM stock falling below the last two recent lows I would wonder if the stock is going to fall further. That would / Read More
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