Those members following my YUM Stock rescue trade know that I am down at the $72.50 put strike having rolled from the $75 put strike down to $72.50. The announcement today that YUM Stock will split into two distinct companies and both will be publicly traded boosted the stock price this morning. This is because those who have shares in YUM Stock will pick up shares in the new Asian spin-off as well.
Announcements like these are the reason I stay with big cap stocks. Even in the worst of times big cap stocks are worthwhile to trade within.
This is a strategy discussion article that looks back at the past 10 years of trading within YUM Stock to show why big cap stock investing for the small investor can work well. Focusing on diversified big cap stocks with a global presence can both grow a portfolio for the small investor as well as protect it from steep losses………….The rest of this rescue strategy article is for members.