Cabot Options Institute Income Trader: Alert (KO)
Coca-Cola (KO)
As part of the Income Wheel approach, we allowed our KO calls to expire in the money at expiration last week. As a result, our shares were “called” away at the price of 55.
Today, as our Income Wheel strategy states, we are going to start the Income Wheel approach again in KO by selling more puts.
KO is currently trading for 58.36.
Here is the trade:
Sell to Open KO January 19, 2024, 57.5 puts for $0.76.
Delta of short put: 0.35
Probability Closing Out-of-the-Money: 62.62%
Probability of Touch: 76.40%
Total net credit: $0.76
Max return (cash-secured): 1.3%
If you have any questions, please do not hesitate to email me at andy@cabotwealth.com