Pilgrim Pride Corp returns 197% in 9 months

This recommendation does not include the in-depth analysis of the underlying equity that gave rise to this options recommendation. Subscribers are spared the detail of the equity analysis as only necessary information about the option is provided.

JANUARY 2019 RECOMMENDATION

Company name: pilgrim pride corp

Company background

Pilgrim’s Pride Corp. is engaged in the production, processing, marketing and distribution of fresh, frozen, and value-added chicken products to retailers, distributors and foodservice operators. It operates through the following segments: U.S., U.K. & Europe, and Mexico. The company was founded by Lonnie A. Pilgrim and Aubrey Pilgrim on October 2, 1946 and is headquartered in Greeley, CO.

Option symbol:    PPC210115C00013000

Expiration date: 15th January, 2021

Stock price at recommendation: $15.3.

Strike price at recommendation: $13

Options premium at recommendation: $6.4

Expectation

  1. We expect the price to rise by 30%-50% to $26.6-$30.3 for a total return of 75%-165% before the expiration date.

NOTE

  1. When to sell is entirely up to you. However, while we believe that the stock has the potential to rise to the anticipated price, you don’t have to wait for the price to rise to the expected range before selling, especially if the price move early
  2. Except you have good reason, don’t panic if the price of the stock goes down. It’s often an opportunity to get the option at a cheaper price. As you can see, this is an option with extended timing. The timing was taken into consideration before recommendation. So, we have time to play with before expiration time.

OUTCOME

Date sold: 26th September, 2019

Price when sold: $32

Stock return: 109%

Option return: 197% 

Annualized return: 263%

The price of the stock rose by 109% to $32 in 9 months, amounting to a nominal option return of 197% and an annualized returned of 263% respectively.

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