Selling the basics is boring but will make you rich.

Businesses that sell everyday items like soda, beer, diapers, toothpaste, chocolate, and cigarettes aren't very exciting. They are great long-term investments that rarely make the front page news.

World-class companies like Coca-Cola (KO), Procter & Gamble (PG), Hershey (HSY), and Philip Morris (PM) are reliable cash-flow generating businesses.

The world class company of focus today is consumer-goods giant Johnson & Johnson (JNJ). This diversified business is all over the world in more than 60 countries with brand-name products like Band-Aid, Neutrogena, Listerine, Tylenol, and Aveeno. You likely use one of JNJ's products every day.

JNJ also has pharmaceutical and medical devices and diagnostics businesses generating over $25 billion in annual sales.

Overall the company is doing great with 9% 12 month sales growth and profit margins above 20%. The company is so consistently profitable that it has been able to raise its dividends every year for 55 years in a row. JNJ trades at a fair price of 13.9 EV/EBITDA.

Shares have struggled recently but a bottom could be forming here.

These extreme moves in great businesses rarely last long. The company should start attracting the interest of big-money investors looking for safe places to park their cash and earn a large growing dividend.

Trade details:

Sell the August 17, $125 puts on J&J for $3 (using a limit order).

At expiration if shares are above $125: put sellers will keep the $3. A six week trade is 20.9% annualized return.

At expiration if shares are below $125: put sellers will buy shares at a discount to current prices.

For protection use a stop loss at $115. Shares will have reached new 52 week lows and this will realize about 5.7% loss which is very small and allows us to trade another day.

Earn a safe income by selling JNJ puts today.

Disclosure: I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.

P.S. Trade Updates:

Hershey (HSY) is at new two-month high over $95. If you sold the July 20, $92 puts your on track to earn a 26.4% annualized return. Continue holding with stop loss at $82.

Philip Morris (PM) is also at a two-month high over $82. If you sold the August 17, $77.50 puts your on track to earn 16.4% annualized return. Continue to hold with a stop loss at $70.