Seeking Alpha

Aktienfahnder's  Instablog

Send Message
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
View Aktienfahnder's Instablogs on:
  • 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.

    Apr 16 1:48 AM | Link | Comment!
Full index of posts »
Latest Followers
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.