JOIN ME LIVE AT 9 AM ET FOR: FAST MONEY FRIDAYS
End-of-week sessions are for short-dated trades, fast SPY setups and positioning into the weekend. I’ll show how I’m managing open trades and what I’m watching for Monday’s open.
I was scanning through food stocks recently, and something caught my eye that I couldn’t ignore.
Kraft Heinz (KHC) has fallen back down near COVID lows — we’re talking about a household name trading like it’s March 2020 all over again. When I see a stock with this kind of brand recognition and market history trading at these levels, I start thinking about structure.
And with food companies showing some resilience in shaky markets, this one stands out as a solid defensive play if we do see more downside in the broader market.
This isn’t a typical Pinch Point income trade for me. It’s something different — an opportunity to potentially own shares at a serious discount while collecting premium upfront. The dividend alone is 6.41%, which makes holding shares a lot more palatable.
The Trade Structure That Makes Sense
Here’s what I put together: I’m buying the $22.50 put and selling the $20 put with a January 2026 monthly expiration (the third Friday), collecting about 49-cents in credit.
Let me walk through the math because it’s what makes this compelling. My assignment price would be $22.50, but after factoring in the $2.50 spread profit and the 49-cent credit, my actual break-even would be $19.51.
Think about that for a second…
If I own KHC at $19.51 and it rallies back up to $35 or $40 — which isn’t unreasonable given its historical range — that’s a great trade.
A simple move from $20 up to $30 alone offers $10 of appreciation, and when you layer in a dividend north of 6%, the total return picture becomes even more attractive.
That kind of kicker adds meaningful weight to an already favorable setup.
But here’s where it gets even better. If I get assigned shares and want to repair the position, I could sell calls that are about 30 days out for anywhere between 50 cents to $1.
That’s potentially $50 to $100 on a $1,900 position — roughly 5% in a month.
Why the Dividend Changes Everything
This isn’t just about price appreciation. With a 6.41% dividend and strong support around $20, if the stock bounces and moves higher, the combination of appreciation and income creates multiple pathways to profitability.
And in a market that may still have some volatility ahead, KHC offers the kind of stability that makes it a strong defensive candidate in a portfolio.
I’m not forcing anything here. The market will decide whether I collect the credit and walk away, or whether I end up owning shares at levels that make fundamental sense with a meaningful dividend to boot.
I’ll see you in the markets.
Chris Pulver
Chris Pulver Trading
Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!
- Telegram:https://t.me/+av20QmeKC5VjOTc5
- YouTube:https://www.youtube.com/@FinancialWars
- Twitter:https://x.com/realchrispulver
- Facebook: https://facebook.com/therealchrispulver
Important Note: No one from the ProsperityPub team or Chris Pulver Trading will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Welcome to Fast Money Fridays… Your Chance To Wrap The Week The Right Way
Join me live at 9 a.m. ET in the Daily Profit Plan as we close the week with a sharp, no-fluff breakdown of what’s moving now and what’s ahead.
Here’s what I’ll walk you through:
- Daily levels you need on your screen
• The morning income play setting the tone
• Weekly and monthly expirations that matter most
• My “Win the Day” approach to finish strong
• A showcase of today’s Daily Profit Play
Why head into the weekend guessing when you can step in with clarity, confidence, and a plan?
Click Here To Join The Room Now
