PepsiCo Stock has been in my portfolio since 2009. PepsiCo Inc is a profitable Beverages (Nonalcoholic) company that trades on the NYSE. PepsiCo, Inc. (PepsiCo) is a global beverage, snack and food company. PepsiCo sells products in 200 countries around the world. PepsiCo Stock symbol is PEP.
PepsiCo Stock trades on the New York Stock Exchange and is a member of the DOW 30 stocks. PepsiCo Stock 20 years ago was paying 6.5 cents quarterly dividend. Today the PepsiCo Stock quarterly dividend is 53.75 cents. The dividend increases and capital gains in the stock over the past 20 years have been stellar.
PepsiCo Stock 5 Year Chart
The five-year chart below shows that Pepsico Stock has been above $70 back in 2008 before the bear market collapse in the fall. In March 2009 PepsiCo Stock fell at $45.63 before a recovery commenced. In September 2011 the stock pulled back to around $59.60 before starting another rally higher. PepsiCo Stock has been easy to sell puts against. When stock has been assigned it has always been a simple choice to accept shares and sell covered calls to be exercised out of the shares. I then return to put selling.
PepsiCo Stock (PEP Stock) Investment Strategy
The investment strategy for Pepsico Stock (PEP 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. The second strategy in use is the Bollinger Bands Strategy Trade which you can review through this article. Between these two strategies the returns have been very profitable for PepsiCo Stock with a 19% return in 2012. I am expected great returns in 2013 as well.
PepsiCo Stock (PEP Stock) Trades For 2013 – Year 5
|PepsiCo Stock (PEP Stock) TRADE STATS:
Capital Currently In Use: $40010.00
Income Earned in 2013: $14870.00
Total Income Earned Since Trade Started In 2009: $49841.00
Total Of My Own Capital Required If All Naked Puts Were Assigned: $0.00
Number Of Shares If All Naked Puts Were Assigned: 500
Share Price Valuation(Total Capital Required/Number of shares): $0.00
|REVIEW PRIOR YEARS:|
|Review PepsiCo Stock Trades For 2012|
|Review PepsiCo Stock Trades For 2011|
|Review PepsiCo Stock Trades For 2010|
|Review PepsiCo Stock Trades For 2009|
|Review All Portfolios for US Stocks|
|Review All Portfolios for Canada Stocks|
|Review All Retirement Portfolios|
|SELECT TO REVIEW ALL MY STOCKS|
|Action Taken (All Figures Are US Dollars)
ACTIVE TRADES ARE HIGHLIGHTED
|Sep 5 2012
||71.45||Sold 5 PepsiCo Stock Naked Puts 19JAN13 $67.50 for $1.15 (status – carried into 2013 – expired)
|Dec 28 2012
||68.15||Sell To Open (STO) Put Selling 5 PepsiCo Stock Naked Puts 19JAN13 $67.50 Strike for $.85 (status: carried into 2013 – expired)
|Dec 28 2012||68.15||Sell To Open (STO) Put Selling 5 PepsiCo Stock Naked Puts 19JAN13 $70.00 Strike for $2.35 (status: married into 2013 – expired)||10.00||35010.00||1165.00||34971.00|
|The above are the remaining trades from 2012. You can review PepsiCo Stock 2012 Trades through this link. Total capital earned in 2012 = $20266.75 / $102533.25 capital in use = 19.25% return|
|All PepsiCo Stock Trades Below Are in 2013|
|Jan 18||92.26||January Options Expiry: $67.50 naked puts expired||34971.00|
|Jan 23||71.85||Sell to Open (STO) Put Selling 5 PepsiCo Stock Naked Puts 16FEB13 $70 for .65 (status: expired)
|Feb 13||71.25||Bought 500 shares PepsiCo Stock for $71.25||5.00||(35630.00)|
|Feb 13||71.25||Sell To Open (STO) Put Selling 5 PepsiCo Stock Naked Puts 16MAR13 $70 Strike for $0.74
|Feb 15||73.62||Sold 500 shares PepsiCo Stock for $73.62||5.00||36805.00||1175.00||36821.00|
|Feb 15||72.70||Sell To Open (STO) Put Selling 10 PepsiCo Stock Naked Puts 16MAR13 $72.50 Strike for $1.15 (status: expired)
|Feb 15||73.68||Feb Options Expiry: $70 naked puts expired|
|Feb 27||74.82||Sell To Open (STO) Put Selling 5 PepsiCo Stock Naked Puts 20APR13 $75.00 Strike for $1.55 (status: expired)
Comments: Now moving to selling in the money using the Walk That Profit Home To Momma Strategy as I believe the stock will break through $80 sometime before July.
|Mar 15||77.04||March Options Expiry: $70 and $72.50 naked puts expired|
|Mar 20||76.30||Sell To Open (STO) Put Selling 10 PepsiCo Stock Naked Puts 18MAY13 $77.50 Strike for $2.58 (status: BTC May 7 for .05 cents)||15.00||77515.00||5145.00||43866.00|
|Apr 19||82.77||April Options Expiry $75 put strike expired
Comments: In my opinion PepsiCo Stock is overvalued above $80. $80 would be the last strike I would be interested in selling at present. Earnings have to improve to support higher valuations. Investors are a little over exuberant with PepsiCo Stock at these levels. I will close my May $77.50 puts when it is worth 5 to 10 cents. I will only be Put Selling at or below $80.00 at present. (This ends the Walk That Profit Home To Momma Strategy and I will move back to Put Selling out of the money and normally below $80)
|Apr 24||82.35||Sell To Open (STO) Put Selling 5 PepsiCo Stock Naked Puts 22JUN13 $77.50 Strike for $0.66 (status: expired)||10.00||38760.00||320.00||44186.00|
|May 7||83.30||Buy To Close (BTC) 10 PepsiCo Stock Naked Puts 18MAY13 $77.50 Strike for .05||15.00||(65.00)||44121.00|
|Jun 3||79.90||Sell To Open (STO) Put Selling 5 PepsiCo Stock Naked Puts 20JUL13 $77.50 Strike for $1.39 (status: expired)
|Jun 21||80.13||June Options Expiry: $77.50 naked puts expired|
|Jun 25||79.80||Sell To Open (STO) Put Selling 5 PepsiCo Stock Naked Puts 17AUG13 $77.50 Strike for $1.18 (status: expired)
|Jul 19||86.41||July Options expiry 5 $77.50 puts expired
Comment: PepsiCo Stock is overvalued in my opinion and I will wait for it to pull back.
|Aug 16||80.16||Aug Options Expiry 5 $77.50 puts expired
Comments: Stock is moving back into normal range and I will be Put Selling shortly
|Aug 27||78.80||Sell to Open (STO) Put Selling 10 PepsiCo Stock Naked Puts 21SEP13 $77.50 strike for $1.35 (Status: expired)
|Sep 10||79.13||Bought 500 Shares of PepsiCo Stock (status: sold Sep 19 for $82.39)
Comments: Both the MACD and slow stochastic issued a busy signal yesterday. I waited for the open just to be sure the stock is moving higher and bought 500 shares.
Read this article to understand this trade.
|Sep 19||82.39||Sold 500 shares of PepsiCo Stock at $82.39||5.00||41190.00||1620.00||49006.00|
|Sep 19||81.42||Sell to Open (STO) Put Selling 5 PepsiCo Stock Naked Puts 19OCT13 $80.00 strike for .81 (status: expired)
|Sep 20||81.74||Sep Options Expiry $77.50 puts expired|
|Oct 10||80.00||Sell to Open (STO) Put Selling 5 PepsiCo Stock Naked Puts 16NOV13 $80.00 strike for .90||10.00||40010.00||440.00||49841.00|
|Oct 18||83.01||Oct Options Expiry $80 put strikes expired|
PepsiCo Stock Internal Links
PepsiCo Stock External Links