The Investment Road to Freedom

June 26th, 2013 at 7:51 pm

KO – Option Trade

I have had Coca Cola (KO) in my Roth IRA since September of 2012 and had been looking to start a position in my taxable account. The reasons are known to all investors – this is a fantastic company with a fantastic future. So on Tuesday June 25th I sold a cash secured JUL2013 put with a strike price of $39. The stock was trading at $39.53 at the time of the transaction. I received $0.62 x 100 shares so after commissions my total income from the trade was $47.01. For risking $3900 I have made a return of 1.20%.

The income from this trade takes my 2013 total to $388.81. Please note I also own 8 shares in my Roth IRA.


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