Kraft Stock has been a member of my Put Selling portfolio since 2008. In 2012 Kraft broke into two divisions. The grocery business will continue to have the Kraft name while the international division will continues under the name of Mondelez International. Mondelez stock has been trading for years but should now see increased earning with the Cadbury acquisitions.
At the start of the year I was trading Kraft Stock. After October I moved to Mondelez Stock but I will be trading both in 2013.
Mondelez Stock has not been consistent in its dividend increases which is the same with Kraft Stock. However overall I have enjoyed Put Selling profits in Kraft and I am sure MDLZ Stock will work out. While not spectacular in profits, the returns are simple to earn and as such I will be trading both companies.
Mondelez Stock (MDLZ Stock) and Kraft Stock Investment Strategy
The investment strategy for Mondelez Stock (MDLZ Stock) and Kraft 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. It won’t concern me to hold Mondelez Stock (MDLZ Stock) or Kraft Stock for an extended period of time. Before it became Mondelez Stock (MDLZ Stock) I had held shares of Kraft Stock (KFT Stock) at various times over the past 4 fours. The stock stays in a narrow trading range which means that put premiums are not large but they are reasonable and the Put Selling strategy works very well with the underlying stock so it remains worthwhile and profitable to keep Put Selling Mondelez Stock (MDLZ Stock) and Kraft Stock. In 2013 I will be breaking these into two separate trades. Kraft Foods symbol will be KRFT and it will trade on the NASDAQ Index.
Current Mondelez Stock (MDLZ Stock) Status – Year 5
KRAFT STOCK (KFT) and MONDELEZ STOCK (MDLZ Stock) STOCK TRADE STATS:
Capital Currently In Use: $24015.00
Income Earned in 2012: $2856.25
Total Income Earned Since Trade Started In 2008: $20657.00
Total Of My Own Capital Required If All Naked Puts Were Assigned: $3358.00
Number Of Shares If All Naked Puts Were Assigned: 1000
Share Price Valuation(Total Capital Required/Number of shares): $3.36
|Action Taken (All Figures Are US Dollars)
ACTIVE TRADES ARE HIGHLIGHTED
|Dec 19 2011||36.25||Final Kraft Stock Trade for 2011
Sell To Open (STO) Kraft Stock 10 Naked Puts Feb $33 put strike for .28 (status: expired)
|END OF 2011 TRADES|
|Jan 13 2012||38.15||Sell To Open (STO) Kraft Stock 10 Naked Puts Feb $37 put strike for .37 (status: expired)||19.50||37019.50||350.50||18151.25|
|Jan 30||38.35||Sell To Open (STO) Kraft Stock 10 Naked Puts MAR $37 put strike for .53 (status: expired)||19.50||37019.50||510.50||18661.75|
|Feb 17||39.55||Sell To Open (STO) Kraft Stock 5 Naked Puts March $38 put strike for .58 (status: expired)||13.25||19013.25||276.75||18938.50|
|Feb 17||39.58||Sell To Open (STO) Kraft Stock 5 Naked Puts April $37 put strike for .62 (status: expired)||13.25||18513.25||296.75||19235.25|
|Feb 17||39.61||Sell To Open (STO) Kraft Stock 5 Naked Puts June $36 put strike for .81 (status: expired)||13.25||18013.25||391.75||19627.00|
|After Feb 17 no more trades done until October when I started trading MDLZ STOCK|
|Nov 16||25.15||Sell To Open (STO) MDLZ Stock 10 Naked Puts Dec $25 put strike for .58 (status: expired) Note Change In Commission rates to $1.00 a contract plus $5.00 per trade||15.00||25015.00||565.00||20192.00|
|Nov 27||25.60||Sell To Open (STO) MDLZ Stock 10 Naked Puts Jan $24 put strike for .48||15.00||24015.00||465.00||20657.00|
KRAFT & MDLZ Stock Internal Links
MDLZ Stock External Links