Cabot Options Institute Income Trader – Alert (KO, WFC)
Coca-Cola (KO)
As part of the Income Wheel approach, we allowed our Coca-Cola (KO) puts to expire in-the-money at expiration last week. As a result, we were issued shares at our chosen put strike of 60.
Today, as our Income Wheel strategy states, we are going to sell calls against our newly issued shares in KO. We are not selling naked calls, so you need to have at least 100 shares if you wish to enter a new position in KO. For those of you that are new to Income Trader and wish to follow along with KO, buying at least 100 shares of KO for every call contract you wish to sell is required as we are in the covered call phase of the Income Wheel strategy for KO.
KO is currently trading for 57.89.
Here is the trade:
Sell to Open KO October 21, 2022 60 calls for $0.70.
Wells Fargo (WFC)
As part of the Income Wheel approach, we allowed our Wells Fargo (WFC) puts to expire in-the-money at expiration last week. As a result, we were issued shares at our chosen put strike of 41.
Today, as our Income Wheel strategy states, we are going to sell calls against our newly issued shares in WFC. We are not selling naked calls, so you need to have at least 100 shares if you wish to enter a new position in WFC. For those of you that are new to Income Trader and wish to follow along with WFC, buying at least 100 shares of WFC for every call contract you wish to sell is required as we are in the covered call phase of the Income Wheel strategy for WFC.
WFC is currently trading for 39.77
Here is the trade:
Sell to Open WFC October 21, 2022 41 calls for $1.30.