This is the second trade I made on Monday with the funds freed up from JNJ.
music selection: “Jumpin’ Jack Flash” — The Rolling Stones
Du Pont is known as a chemical company but it also has its hand in the GMO space offering enhanced seed to farmers. This has been a very lucrative line of business for the company. The company has a safe and growing dividend and is buying back its own stock. I like that management has been able to control and reduce general, sales, and administrative costs over the last few years. It is evidence there is focus on the bottom line.
I wrote DD151127P00063500 for 1.51. The trade will be open for 26 days and yields 33.38% annualized. The “downside” here is owning a great company at a great price. If assigned, I’ll write covered calls approximately 5% out of the money for extra income while I wait on the 2.4% (and growing!) dividend yield.
I have one more trade for you on Friday and an update on Third Point Re’s quarter on Monday.
Devour your prey raptors!