Yesterday the following puts expired worthless in a taxable account:
01/11/2011 STO 4 KO Feb 18 2012 65 Puts @ .51 +190.95
Coca Cola was trading at ~69 at options expiry. The margin
maintenance on this trade was $4400. We earned $190.95 in 39 days. This equates to a return on margin of 4.34% or
40.61% annual.
Showing posts with label Coca Cola put. Show all posts
Showing posts with label Coca Cola put. Show all posts
Saturday, February 18, 2012
Thursday, January 12, 2012
New Trade: Sold Coca-Cola (KO) Puts
Yesterday I entered into the following transaction in a taxable account:
01/11/2011 STO 4 KO Feb 18 2012 65 Puts @ .51 +190.95
Due to some fungus in orange juice, Coca-Cola was very weak yesterday. I took advantage of the opportunity to enter into a trade on this blue chip, dividend champion stock that needs no introduction. The margin maintenance on this trade is $4400. If they expire worthless we will earn $190.95 in 39 days. This equates to a return on margin of 4.34% or 40.61% annual. There is money in this account to purchase the shares if put to us but we'd probably roll for a net credit before we'd allow that to happen. Buying KO at 64.50 ain't a bad thing though.
01/11/2011 STO 4 KO Feb 18 2012 65 Puts @ .51 +190.95
Due to some fungus in orange juice, Coca-Cola was very weak yesterday. I took advantage of the opportunity to enter into a trade on this blue chip, dividend champion stock that needs no introduction. The margin maintenance on this trade is $4400. If they expire worthless we will earn $190.95 in 39 days. This equates to a return on margin of 4.34% or 40.61% annual. There is money in this account to purchase the shares if put to us but we'd probably roll for a net credit before we'd allow that to happen. Buying KO at 64.50 ain't a bad thing though.
Saturday, December 17, 2011
Profitable Trade - Coca-Cola (KO) Puts
Today our KO puts expired worthless. The transaction was as follows:
Sold 2 KO Dec 17 2011 62.5 Puts@.71 +130.47
We earned 1.04% in 26 days or 14.65% annual. If one were to calculate return on margin (ROM) our return with an initial margin requirement of 1794.99, comes to 7.26% or 102% annual.
Sold 2 KO Dec 17 2011 62.5 Puts@.71 +130.47
We earned 1.04% in 26 days or 14.65% annual. If one were to calculate return on margin (ROM) our return with an initial margin requirement of 1794.99, comes to 7.26% or 102% annual.
Monday, November 21, 2011
Sold Coca Cola (KO) Puts
With the DOW down ~300 to ~11500 and Coca-Cola down to ~65.58 I entered into the following transaction in a taxable account:
Sold 2 KO Dec 17 2011 62.5 Puts@.71 +130.47
We'd be happy to own KO at ~62. Our yield on cost will exceed 3%. In addition, KO is set to raise the dividend next quarter. If the puts expire worthless we will earn 1.04% in 26 days or 14.65% annual. If one were to calculate return on margin (ROM) our return if the puts expire worthless, with an initial margin requirement of 1794.99, comes to 7.26% or 102% annual.
Sold 2 KO Dec 17 2011 62.5 Puts@.71 +130.47
We'd be happy to own KO at ~62. Our yield on cost will exceed 3%. In addition, KO is set to raise the dividend next quarter. If the puts expire worthless we will earn 1.04% in 26 days or 14.65% annual. If one were to calculate return on margin (ROM) our return if the puts expire worthless, with an initial margin requirement of 1794.99, comes to 7.26% or 102% annual.
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