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.
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.
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.
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.
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.