Nucor Stock (NUE) Trades For 2012

Nucor Stock has been in my portfolio since 2010. Nucor specializes in the sale of steel and related products in North America. Unlike other steel producers, Nucor has not cut its dividend but increased it for 38 years in a row. The credit crisis of 2008 to 2009 pummeled a lot of stocks and in particular basic stocks that are the backbone of infrastructure like Nucor Stock. Nucor Stock traded as high as $83.56 on May 19 2008, before it plunged to $25.25 by November 20 2008. This collapse of 69.7% in value has been followed by a recovery of about half of what was lost. At $26 I found Nucor Stock incredibly attractive and I have been Put Selling Nucor Stock ever since.

Nucor Stock Collapse In 2008

The 2008 weekly chart of Nucor Stock below shows the collapse of this stock during the credit crisis. The loss of 69.7% of its value shocked many investors and the question of whether the dividend would be cut was raised many times. Nucor however did not cut the dividend and instead chose to raise it to continue the history of annual increases which now stretches back 38 years.

The collapse of Nucor Stock in 2008

Nucor Stock (NUE Stock) Investment Strategy

The investment strategy for Nucor Stock (Nue 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 have no interest in owning the stock and once this stock recovers back to above $50.00 I will no longer be Put Selling Nucor Stock.