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YUM breakout target $98Analysts’ recommendations Of the 24 analysts that follow Yum! Brands (YUM), 41.7% have given the stock “buy” ratings, while 54.2% have given it “holds,” and 4.2% have given it “sells.” On average, analysts have set a price target of $95.05 on the stock, representing a potential return of 2.6% from its January 29 closing price of $92.67. 4 Since the beginning of December 2018, Barclays, JPMorgan Chase, and Morgan Stanley have raised their price targets on YUM. Barclays has raised its price target from $94 to $97, JPMorgan Chase has raised its price target from $90 to $91, and Morgan Stanley has raised its price target from $90 to $97. However, on January 11, Goldman Sachs downgraded the stock from a “neutral” to a “sell” and also lowered its price target from $83 to $76. Peer comparison Of the 23 analysts that follow Domino’s Pizza (DPZ), 60.9% are favoring “buys,” while the remaining 39.1% are favoring “holds.” Analysts have given the stock a price target of $292.81, which represents a potential upside of 6.5% from its price of $274.85. Of the seven analysts that follow Papa John’s (PZZA), 71.4% are favoring “buys,” and the remaining 28.6% are favoring “holds.” Analysts have set a price target of $57.50 on the stock, which represents a potential upside of 35.8% from its price of $42.33. Valuation multiple On January 29, Yum! Brands was trading at a forward PE multiple of 24.3x compared to 22.8x before its announcement of its third-quarter earnings results. The increase in Yum! Brands’ stock price also raised its valuation multiple. On the same day, its peers Domino’s Pizza and Papa John’s were trading at forward PE multiples of 28.7x and 28x, respectively. Yum! Brands is currently trading at 25.0x analysts’ 2018 EPS expectation of $3.70 and 24.3x analysts’ 2019 EPS expectation of $3.81, with its EPS expected to rise 25.1% in 2018 and 2.8% in 2019.
NYSE:YUMLong
by ShukriMahadi
YUM Gartley pattern, butterfly pattern, and inside day!With the volatility is going wilder, I usually turn to some defensive stocks like consumer goods, retailers, and restaurants! Here we got this YUM, the blue bullish butterfly pattern just hit the entry and formed an inside day; Also, there is a bigger green Gartley pattern entry near 78.00. Accordingly, if the inside day is able to break to the upside on Monday, it's the 1st shot to take some long; With such defensive stock, we don't really need to put the out at the inside day low if you aren't trade with crazy leverage. So, put the out below 75.00 and take some more from the Gartley will be my plan yo! If the inside day breaks to the downside, the butterfly long doesn't exist anymore; but the Gartley remains available! Let's see how it goes!
NYSE:YUMLong
by Trader_Joe_Lee
BROKEN OPTIONS SETUPS AND THE ART OF PATIENCEPeople have frequently mentioned to me that they can't make iron condors work for them, primarily because a single broken setup can undo a long string of profitable trades. This, of course, is a true statement if absolutely nothing is done to attempt to repair these broken trades and get them back to at least scratch or, ideally, into profit. It's all a question of patience. Here is one of my most patience-testing trades I've been diligently working since October 2015 earnings -- YUM. I'm showing only the original setup here, along with the "current state of affairs" (a July 15th 70/75/82.5/90 iron condor); there are a bunch of rolls in between. And, lo and behold, we're back to where we started with YUM price, although my setup isn't currently ideal to take advantage of it (the short call is right at where price is now). And even though the current setup looks "troublesome," I've collected enough credit with rolls to be able to contemplate getting out of this trade for scratch with the July 15th expiry (or even a small profit, depending on how patient I am). This trade naturally presents an extreme example of how long it can take to work out one of these broken trades. It may take a few days to get the movement you need; it may take a few weeks; here, it's taking months. Regardless of how long it takes, however, a couple of factors and/or variables are constant -- patience and trade sizing. Going small on trades allows you to be able to have a bit of buying power tied up with messes like this while you continue to work and book profit on higher probability trades. Go too big, and you're losing sleep over one broken setup that you feel pressured to close early because you lack the patience to give it time to work out. A Side Note: YUM isn't the most volatile underlying in the world the vast majority of the time, but implied volatility does ramp up a bit around earnings, so it's to your advantage to exercise patience and roll on these implied volatility ramp ups if you can, since you'll collect more premium if you do so.
NYSE:YUM
by NaughtyPines
UPDATE: YUM BROKEN IRON CONDORThese earnings plays gone awry usually involve long stories, since it frequently takes a bit of time with rolling, massaging strikes, and such to get the thing into a state where you can exit for at least a scratch. On October 6th, I played earnings via a 2 contract 72/75/90/93 iron condor, for which I received a .94 credit. Price proceeded to breach the short side, but I closed out the call side for a .16 debit, and then proceeded to roll out the 72/75 short put wing to the Nov 27th expiry for a 1.25 debit, which I matched with an opposition call side slightly above the short put side (same expiry; 73/76) for a 1.74 credit. On Nov 24th, I closed out the call side for .64 debit, rolled out the short put side to the Dec 31st expiry for a 1.78 debit, and again matched it with an oppositional call side (Dec 31 75/78 for 1.66 credit) (so for the last two rolls I've basically been treading water, with debit received for the short put side roll about equal to that for the credit spread ). Truth be told, I had an opportunity to improve the short put side in early December when price broke 76, but wasn't paying attention ... . In any event, with 10 DTE, I'm looking to close out the short call side here while I can for a profit, as I don't really want to be short call YUM at 75, since I'm generally bullish on the underlying, given the fact that it's their intent to spin off the Chinese business which, last earnings, was a drag on price ... . I'll then proceed to deal with the short put side of the setup as we get closer to expiration ... .
NYSE:YUM
by NaughtyPines
The Risk of trading Earnings - Bullish signal turns to a loss Earnings are high risk binary events. Many traders try to time major directional earnings moves by using technical analysis (me included). Although it often works, it sometime can end up with an unpleasant loss. Before $YUM's earnings, I sent to the Elite Zone members a setup suggesting that $YUM could reach 92$ and complete a bearish Bat pattern (potential aggressive C scenario). This aggressive C scenario, started around 76$, got some confirmation signals earlier this week as the stock broke out of a daily downtrend line and closed above several important SMA lines (I use these confirmation signals all the time). It turned out that $YUM crashed 18% following its reports, way below the stop loss zone (near 74$), violating my setup. Few after thoughts and conclusions: 1. Re-analyzing the chart confirmed the bullish setup. Sometime you get everything right and yet the result is a loss. It doesn't mean you've done anything wrong. 2. Accept the risk - Especially if you trade earnings! (high risk trades) 3. Use options to decrease your capital at risk (if you do not know how to trade options, learn.. don't use it without proper knowledge) 4. Shake it off! Losses are part of the game. 5. You will never win them all. Hope that helps some of you. Tomer, The MarketZone Follow me on TradingView Subscribe to my newsletters - goo.gl Follow my blog - goo.gl Subscribe to my Youtube channel - goo.gl
NYSE:YUM
by themarketzone
YUM 10/6 EARNINGS PLAYYUM announces earnings on 10/6 after market close, so if you're going to play this via an options setup, look at getting a fill for whatever you put on prior to the 10/6 New York close. Ordinarily, I trade these using a short strangle or iron condor, with the short call/put legs at or around the 1 standard deviation line for the chosen expiry, which will either be the Friday immediately after the earnings announcement or the Friday thereafter if the earnings announcement is too late in the week to manage the trade post-announcement if necessary. SHORT STRANGLE: A short strangle is an undefined risk strategy that consists of selling a put and a call with the assumption that price will remain between the strikes of the put and call for the duration of the contract. Oct 16th Expiry 74.5 Short Put/89 Short Call Short Strangle 74% Probability of Profit Maximum Profit: $121/contract Buying Power Effect: Undefined Break-Evens: 73.29/90.21 IRON CONDOR: An iron condor is a defined risk strategy that consists of a long put, a short put, a short call, and long call with the assumption that price will remain between the strikes of the short put and short call for the duration of the contract. Oct 16th Expiry 72 Long Put/74.5 Short Put/89 Short Call/91.5 Long Call Iron Condor 70% Probability of Profit Maximum Profit: $57/contract Buying Power Effect: $193/contract Break-Evens: 73.93/89.57 Look to take both of these trades off at 50% max profit ... . Should price breach one side or the other of your setup, look to roll that side out to a later option expiry for credit and, if possible, for an improvement of your strike prices.
NYSE:YUM
by NaughtyPines
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