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!

Write puts E. I. du Pont de Nemours and Company (DD)

Never miss another opportunity to devour prey!

Leave a Reply

Your email address will not be published. Required fields are marked *


This site uses Akismet to reduce spam. Learn how your comment data is processed.