Looks like a good support zone between 50 and 50.3. The only thing holding me up from buying is that they lowered their outlook THREE DAYS BEFORE EARNINGS (who does that?). I doubt it would drop to much more but I think I'll wait anyway. No sense writing covered calls on this when the premium sucks.
Yes, I bought around the 52.50 level sold a covered call the other day and bought more shares of KO with the premium. I may buy to cover on the K options soon with a small profit, and sell a put around the 50 level. That way i would re-gain my profits on K with the premium and possibly have a better entry price.
In and out of K today. The support zone (50-50.3) held well. If there wasn't so many headwinds, I would've held. I've got a decent idea as to how this stock moves now but I don't know it will enough if we get a bad GDP report (possibly) tomorrow or a bad unemployment number April Tuesday (likely).
I'll continue to follow K as I think it's a good safe stock for an IRA. I'll buy some Raisen Bran with my profits to support the K longs here. LOL!
Status Filled at $50.277 Symbol K Description KELLOGG COMPANY Action Buy Order Type Market Order Date 04/26/2012, 11:20:14 AM ET Order Number D26NPLHQ
Status Filled at $50.40 Symbol K Description KELLOGG COMPANY Action Sell Order Type Limit at $50.40 Order Date 04/26/2012, 02:15:23 PM ET Order Number D26PBJTX
xtg, I dont know K trade patterns really well, but everytime one of these big, WELL POSITIONED comsumer giants take an 8-10% hit, I buy heavy. Then sell after 4-6% profit. Never once missed bagging a profit and I have traded PEP, KO, GIS, KFT, IBM, PM, KMB, etc in similar fashion. Will be looking to sell above $52.
What's the opinion of writing covered calls on the Jan 13 52.50's ?? This would give me a little income now plus the dividend and if the stock is above the strike at expiration I would still be several hundred dollars ahead if I had to sell.
Tempting at 46 not 50. After earnings this puppy is going to grind down. Buy around 46 with a slow ride up to near 50. Sell 50 calls and collect the dividend for a relatively safe income stream for awhile. If they call the options you still did well on a stock that is really going nowhere soon.