WEBINAR, September 6: Designing and Implementing a Retirement Plan CLICK HERE FOR INVITE AND TO REGISTER.Campbell Soup Company (CPB) hit a year high of $35.60 on Tuesday spreading its 52-week range to $29.93-$35.60. CPB has a market cap of 11.09 billion, earnings of $2.31 per share, and a Div/yield of $0.29/$3.29. The stock has surged in the past month after a dip early this summer during the end of May and beginning of June. The spot price is about one point about the 20-day moving average, $34.45, and about two points above the 50-day average, $33.46.
Near-Term Straddle Indication: Term Strike NBBO Size %Spot(Mid)
09/22 $35 $1.20 - $1.45 36 x 581 3.8%
My Trade: Selling the CPB September 35-36 Call Spread at $.50 Risk: $50 per 1 lot Reward: $50 per 1 lot Breakeven: $35.50 Notes: I make money on this trade if CPB is flat, down, up less than 1%. Since Heinz (HNZ) sold off on earnings, I think CPB could follow suit. OptionsProfits can be followed on Twitter at twitter.com/OptionsProfits Andrew Keene can be followed on Twitter at twitter.com/KeeneOnMarket