Campbell soups is steady as she goes. The operating income hovers around $1B give or take. The stock price has declined or raised primarily based on overall market valuation.
The price has steadily declined to $40, and current dividend yield is 3.75% (which is far below US treasuries). If you look below 10 year chart, the stock is at a multi-year support and 10 year low is around $35.
So, I did a buy-write of net $34.28 for Jan 24 $35 strike. The ex-dividend is tomorrow and if the stock didn’t get called then there is a possibility of another dividend. If held till expiry then you get 4.3% simple yield and 14.5% annualized yield.
This is a trade where I am not expecting to lose and make small money; IF it goes below $35, then I will continue to write. Bored, and trying to do these trades to keep me from making bigger mistakes.
