SELL to OPEN KHC $27 Puts for $0.17

Selling KHC $27 10/30 puts for $0.17

2% position

Kraft reports tomorrow morning before the open and with the selloff today and VIX over 38, put premiums are wild.

This put gives me:

8.5% downside protection in exchange for 0.63% of gain. Not too shabby so long as the selloff doesn't accelerate and continue tomorrow. I'd guess even if KHC is down 5% between now and tomorrow's open, this one will be a winner.