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Aktienfahnder's  Instablog

Aktienfahnder
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As a former Naval Officer (German Navy), I am working as a Headhunter today. Whenever I find the time, I love to "battle" the markets and "hunt" for good trading opportunities... - I prefer the US markets as they allow me to prepare for action during the day. On seekingalpha... More
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  • Consider This Callendar Spread For YUM

    Within the last weeks, YUM has been a sure bet. The performance over the last year was 45,78% and even on last Fridays down-market, YUM gained 2,81%.

    You will find plenty of fundamental and technical analysis out there which favor a continuation of YUM´s story. I don´t want to spend time on either one of these now. On the other hand, after a strong rally, there a always signs that expect a pause soon.

    Since I was watching this stock for a while now, I personally believe that the positive trend will continue. A look at this chart supports my positive view:

    (click to enlarge)YUM! Uptrend

    The Option Play

    Sell 10 April 2012 '75' strike calls (priced at 0.70$)

    Buy 10 May 2012 '75' strike calls (priced at 1.36$)

    Net Debit to Start: 0.66$

    In case of a down-move, the lower protection for this option play is @71.21$, which is just slightly above the support @70.90$.

    Here is the strategy graph:

    (click to enlarge)Strategy Graph Callendar Spread YUM!

    Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in YUM over the next 72 hours.

    Tags: YUM, Services, Restaurants, Options
    Apr 16 1:48 AM | Link | Comment!
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