Cereal Stock Sporting Cheap Options

Kellogg Company (NYSE: K) is an American food manufacturing company with a large market share of the breakfast market. It produces cereal and convenience foods, including crackers and toaster pastries, which it sells under several well-known brands. Some of these brands include Corn Flakes, Rice Krispies, Frosted Flakes, Special K, Pop-Tarts, Eggo, Mini-Wheats, Pringles, Cheez-It. Ahead of the bell, the cereal maker is trading flat at $73.89.

Regarding the stock, K has added 18% year-over-year and has increased by 14% in 2022. Coming in as support over the past few weeks has been the 120-day moving average. Nonetheless, Kellogg maintains a decent valuation at a forward price-earnings ratio of 17.61 and a price-sales ratio of 1.70. The company also offers a solid dividend yield of 3.23% at a forward dividend of $2.36.

Unfortunately, the business also holds an unfavorable balance sheet with $7.39 billion in total debt and only $375 million in cash, which could further hurt the company’s growth rate in the long run. As a result, K provides the most value for dividend investors.

 

Switching gears, short-term options traders are quite put-biased. This is per the stock’s Schaeffer’s put/call open interest ratio (SOIR) of 1.85, which stands higher than 98% of readings from the past year.

 

Now might be the perfect time for investors to speculate on the stock’s next move with options. K’s Schaeffer’s Volatility Index (SVI) of 20% sits in the 24th percentile of its annual range, indicating that now is an affordable time to play Kellogg stock.

When individuals think about Reddit stocks, it’s not surprising that GameStop (NYSE:GME) and AMC Entertainment  (NYSE:AMC) come to mind. These two stocks were the poster children of the “meme stock” movement in 2021. And they weren’t alone. There are a number of speculative stocks that are trending in the social media forum.

The Reddit community, however, is interested in more than low-priced stocks. To be clear, penny stocks still draw a lot of interest from the Reddit crowd. But this is a diverse group of investors. In fact, many of the trending Reddit stocks are companies that are in the portfolio of many retail and institutional investors.

That’s why it’s worth paying attention to the stocks that are popular with Reddit investors. That’s the purpose of this presentation. Here are seven stocks that appear to be sound investment choices for 2023. All of these stocks currently have a consensus analysts rating of Hold or better.

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