My Stock Option Pick for September

I decided to sell one put this month.  My pick was YUM Sept 10 44 put.  The YUM ticker symbol stands for YUM! Brands, Inc.  This company operates other companies such as KFC, Taco Bell, Pizza Hut, etc.  I chose them because I think people will always eat inexpensive food, even during tough economic times.  I was able to sell the put for $0.59, for a profit of $0.59 x 100 shares = $59 (before fees are taken out).  After all of the fees from the broker were included it came to a grand total of $44.03 for this month.  The annual percentage rate for this is 12%.  If the stock goes below the strike price of $44, I may have to buy the stock at $44/share.  Today the stock closed at $44.28.

What sealed the deal for me was my husband recently spoke with a truck driver.  They started discussing how business was going for the driver.  The man told my husband that he chose to drive truck transporting food, as oppose to some other item, because people will always need food.  The driver stated that his work has cut back a little, but he is still busy.  He then told my husband that the guys that haul electronics are not doing as good. 

In the previous post, I wrote that I was considering investing in Honeywell International, Inc..  This is listed as an Aerospace/Defense company.  I decided not to invest with this company at this time because the stock options were not very profitable for me.   I only have around two weeks remaining in September before September stock options expire.  As time decreases on the options, they do not earn as much.

After reading the news this evening, I am glad I did not invest with Honeywell International, Inc..  The Huffington Post has an article written by Mike Elk titled Explosion Rocks Honeywell Uranium Facility Run by Scab Workers.  NOT GOOD!  Supposedly the explosion happened when they were splitting Hydrofluoric acid (HF) into Hydrogen and Fluoride.  HF is a nasty little acid. (MSDS)  As a little background, I have taken around four years of college chemistry.  If I remember correctly both Hydrogen and Fluoride are HIGHLY volatile.  It will be interesting to see what happens with the stock tomorrow.