November 27, 2023

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.

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

Andy Crowder

Andy Crowder is a professional options trader, researcher and Senior Analyst at Cabot. Formerly with Oppenheimer & Co. in New York, Andy has leveraged his investment experience to develop his statistically based options trading strategy which applies probability theory to option valuations in order to execute risk-controlled trades. This proprietary strategy has been refined through two decades of research and real-world experience and has been featured in the Wall Street Journal, Seeking Alpha, and numerous other financial publications. Andy has helped thousands of option traders learn and implement his meticulous rules-driven options trading strategies through highly attended conferences, one-on-one coaching, webinars, and his work as a financial columnist. He currently resides in Bolton Valley, Vermont and when he’s not trading, teaching and writing about options, he enjoys spending time with his wife and two daughters, backcountry skiing, biking, running and enjoying all things outdoors.