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Income Trader
Reliable Income From Time-Tested Strategies

October 25, 2022

Our BITO 14 calls for the October 21, 2022, expiration cycle are essentially worthless. Same goes for our GDX 26 calls.

Cabot Options Institute Income Trader – Alert (KO, WFC)

Coca-Cola (KO)

As part of the Income Wheel approach, we allowed our Coca-Cola (KO) calls to expire out of the money at expiration last week. As a result, our calls expired worthless and we reaped the entire premium.

Today, as our Income Wheel strategy states, we are going to sell more calls against our 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 58.30.

Here is the trade:

Sell to Open KO November 25, 2022, 60 calls for $0.80.

COI_IT_102522_KO.png

Wells Fargo (WFC)

As part of the Income Wheel approach, we allowed our Wells Fargo (WFC) calls to expire in the money at expiration last week. As a result, our shares were “called” away at the price of 41. As a result, we locked in 4.7% on the trade and 8% in total since first introducing the position to the portfolio.

Today, as our Income Wheel strategy states, we are going to start the Income Wheel approach again in WFC by selling more puts.

WFC is currently trading for 45.43

Here is the trade:

Sell to Open WFC November 25, 2022, 43 puts for $0.96.

COI_IT_102522_WFC.png

Andy Crowder is a professional options trader, researcher and Chief Analyst of Cabot Options Institute. 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.