05-26-2020, 11:08 AM
(05-26-2020, 10:53 AM)fenders53 Wrote: I just "shorted' DE at a bit over $150. I'll lose money if it runs much past $156 in the next few weeks. This is a "gut play" but the fundamentals are on my side. Wish me luck.
Started a small position in HRL with a 25 share buy. Also sold a JUN put at $45 and received almost a years worth of dividends in advance. I'll keep doing that every month until I get more shares. If the market pulls back I'll get more serious with more than one put sale at a time and get a full position. HRL is an awesome company with next to no debt, but I have no illusion it is undervalued here. It's right at my lower limit for dividend yield for a slow growth company, no matter how good the balance sheet is.
I agree that HRL is fully valued, if not overvalued, but its stability and balance sheet make it attractive in the current economy.