Seeking Alpha

Tom Armistead's  Instablog

Tom Armistead
Send Message
I'm a well-informed retail investor and post on SA in order to expose my thought process to critical examination and comment from readers. It makes me a better investor. I'm particularly proud of bullish macro articles posted in 2009 and later, in which I presented ideas that encouraged me to... More
My blog:
Tom Armistead's Instablog
  • Adding ConAgra Foods 0 comments
    Aug 1, 2013 10:45 AM | about stocks: CAG, MCHP

    Today I added ConAgra Foods (NYSE:CAG) to the Synthetic Dividend Growth Portfolio. Long Jan 2015 30 calls, short Mar 2014 39 calls.

    I rolled Microchip (NASDAQ:MCHP) long calls up from Jan 2014 30 to 35, because the stock is up around 10% and it reflects my preference to keep the strike on the long calls at about 80% of the share price.

    At this point, TXN, MCHP, JNJ and GIS are up to where the covered calls sold against the LEAPS are in the money. That limits my exposure to further upside on the stocks involved, and reduces the portfolio's market exposure.

    To compensate, I added CAG, after checking its valuation on FASTGraphs, Morningstar and S&P. It came up when running the screen that forms the basis for stock selection on the portfolio, and appears fairly valued. I'll be doing due diligence shortly, since Morningstar sees two stars and S&P sees five. It's unusual to have the two organizations publish such varying opinions.

    Disclosure: I am long CAG, MCHP.

    Themes: Dividend Investing, Options Stocks: CAG, MCHP
Back To Tom Armistead's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.