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Kraft Foods Inc.  
About The Company
Market Cap 42.2B
Revenue (FYR) $40.8B
EPS (TTM) $1.43
Shares Out. 1.5B
Book Value $20.50
Div/Share $1.16
Payout Ratio 82x
P/E 20.1x
Price/Sales (FYR) 1.1
P/Cash Flow (TTM) 13.8x
Profit Margin 5.87%
Debt To Capital 38.42%

Kraft Foods Inc is a profitable Food Processing company that trades on the NYSE. Kraft Foods Inc. (Kraft) is engaged in manufacturing and marketing packaged food products, including snacks, beverages, cheese, convenient meals and various packaged grocery products. The Company has operations in more than 70 countries and sell the products in approximately 150 countries. The Company manages and operates, through three commercial units: Kraft Foods North America, Kraft Foods Europe and Kraft Foods Developing Markets. In Feb 2010, Kraft completed its acquisition of Cadbury.The brands of the Company span five consumer sectors: snacks, beverages, cheese, grocery and convenient meals.

 

 

 
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  KRAFT FOODS INC  (KFT) - 2009
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
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CURRENT U.S.
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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%
TRADE COMMENCED Oct 6 2008
GOAL FOR 2009: 12%

ONGOING STRATEGY - SELLING NAKED PUTS UNTIL ASSIGNED

 

Jan 16 09 28.64 Expiration Day 5 Jan 25.00 Puts Expired                
June 15 2009  All the signs point to a lower valuation for Kraft. A sure sign that I should heed the recent upswing as possibly suspect and sell lower strikes. It's interesting though how easy it is to follow a stock like Kraft. Do you notice how few times I even need to post a chart for reference? This is what an excellent Naked Put strategy is all about - picking the right stock to sell the puts against.

 

Jan 20 09 28.22 Sell 5 Naked Puts Mar 25.00 @ .35 1.4     13.25     161.75 947.00
Mar 20 09 22.14 Expiration Day 5 Mar 25.00 Assigned   500 23.14 20.00 12520.00 12520.00    
Mar 23 09 23.15 Sell 5 Covered Calls May 26.00 @ .35 1.3     13.25     161.75 1108.75
Mar 23 09   Dividend 500 X .29 1.1           145.00 1253.75
May 15 09 25.10 Expiration Day 5 May 26.00 Calls Expired       13.25        
May 15 09 25.10 Sell 5 Covered Calls Jun 26 @ .40 1.5     13.25     186.75 1440.50
Jun 19 09 25.41 Expiration Day 5 Jun 26 Calls Expired                
Jun 19 09 25.41 Sell 5 Covered Calls Jul 26 @ .50 1.9     13.25     236.75 1677.25
Jun 26 09   Dividend 500 X .29 1.1           145.00 1822.25
Jul 17 09 27.43 Expiration Day 5 Jul 26 Calls Exercised 3.6 0   20.00 (12980.00) 0.00 460.00 2282.25
Jul 20 09 27.40 Sell 5 Naked Puts Sep 25.00 @ .40 1.6     13.25     186.75 2469.00
Aug 19 09 28.63 Bought back 5 Naked Puts Sep 25 @ .06 -0.24     13.25     (43.25) 2425.75
    Return to Aug for 2009 - 12.6% - additional capital added  1640.50 / 13000.00                
Aug 24 09 28.69 Sold 10 Naked Puts Oct 26 @ .30 1.1     19.50     280.50 2706.25
Sep 18 09 26.73 Expiration Day 5 Sep 25.00 Naked Puts Expired                
Sep 21 09 26.88 Sold 10 Naked Puts Nov 25 @ .55 2.2     19.50     530.50 3236.75
Oct 1 09 26.01 Bought back 10 Naked Puts Oct 26 @ .40 -1.5     19.50     (419.50) 2817.25
Oct 1 09 26.01 Sold 10 Naked Puts Nov 26 @ 1.00 3.8     19.50     980.50 3797.75
Nov 4 09 26.67 BTC 10 Naked Puts Nov 26 @ .25 -0.96     19.50     (269.50) 3528.25
Nov 4 09 26.67 BTC 10 Naked Puts Nov 25 @ .05 -0.20     19.50     (69.50) 3458.75
Nov 4 09 26.67 Sold 10 Naked Puts Dec 26 @ 1.15 4.4     19.50     1130.50 4589.25
Nov 4 09 26.67 Sold 10 Naked Puts Dec 25 @ .60 2.4     19.50     580.50 5169.75
Dec 18 09 27.01 Expiration: Naked Puts Dec 25 and Dec 26 expired                
Dec 21 09 26.97 Sold 10 Naked Puts Feb 26 @ .55 2.1     19.50     530.50 5700.25
Dec 21 2009  The end of the year and end of another successful naked put strategy on Kraft. The secret which I have mentioned repeatedly is that Kraft stays in a range making the selecting of strikes a lot easier. As well should I pick the wrong strike and the stock fall, I can wait for the stock to recover and put my in the money naked puts back out of the money. Looking at the chart below, I can readily see the simple trading range that Kraft has been in for the past 6 months.

Dec 23 09 27.36 Sold 10 Naked Puts Mar 25 @ .37 1.4     19.50     350.50 6050.75
    Return for Year 2009 - $5265.50 = 20.10%                
KRAFT TRADES BY YEARS
VIEW KFT-2011 TRADES
VIEW KFT-2010 TRADES
VIEW KFT-2009 TRADES
VIEW KFT-2008 TRADES

 

 

Disclaimer: There are considerable risks involved in all investment strategies. 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 or presented are financial advice, trading advice or recommendations. Fullyinformed.com is a private website. Everything presented and discussed are the author's ideas and opinions only.
By using this site, you agree to be bound by its terms of use. The full terms of use can be read here. If you do not agree to the terms of use, do not use this site. The author of fullyinformed.com assumes no liability for topics and ideas discussed, errors and omissions, ads and their content and external links. Any corporate insignia used are registered trademarks of their respective company or corporation and are being used for identification purposes only. All material copyrighted by FullyInformed.com. Reproduction in whole or in part prohibited. Copyright 2008

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