The Investment Road to Freedom

July 22nd, 2013 at 5:28 pm

Coca-Cola – Option Expired and New Put

On Friday my July2013 Put that I sold back on June 25th expired, freeing up the $3900 I had in that trade. With the market in a cautious state I wanted to put that money back in to action in a solid stock and today I sold another put on Coca-Cola (KO). After looking over the strike price’s and premiums available I settled on the Sept2013 $40 strike at $0.72. After commission this earned me $57.01 or a 1.42% return.

This is in my taxable account.  The total income earned from KO in this account for 2013 is now $104.02. To earn that in just dividends in I would need to own 93 shares for 1 year. I have done that in 4 months with just two option trades and owning no shares. I also own 8 shares in my Roth IRA.

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