A report came out today that they found Bird Flu here in the United States and it was effecting some of our chickens. Tyson Foods is the #1 poultry producer in the world. Many Asian countries are putting a band on the import of U.S. poultry and eggs after the Bird Flu was confirmed on Sunday at a chicken farm in Tennessee. It’s news like this that moves stocks in a negative way. Tyson Foods is down $1.61 today so I sold a short term Naked option in hopes the stock will stay down until Friday. I sold 30 contracts of TSN 3/10/17 $62.50 Naked Calls for a premium of 50¢. When I sold the Call the stock was at $62.10 so it’s only 40¢ Out-of-the-Money. This trades gets a Risk Factor 5. Here’s the sell order:
Sell to Open 30 TSN 3/10/17 $62.50 C @ 50¢ (+$1500)
I’ll watch this position closely tomorrow morning to see if the stock continue down.
Steve
The Options Coach