COCA COLA STOCK  - 2009 COCA COLA STOCK SYMBOL - KO ONGOING EVALUATION & TRADE - Year 1 This will remain an ongoing trade. The chart on Coca Cola shows a strong company with excellent naked put selling potential. I will be selling Naked Puts until I either accept assignment OR get assigned shares. Then I will turn to covered calls. Should the stock fall too low making covered call selling impractical I will add to my stock position through selling naked puts to lower my overall cost. This is a long term trade. Starting in 2009 I will be using a reverse ladder strategy. This strategy is using naked puts that are sold at lower strikes the further out the trades go. KO TRADES BY YEARS VIEW KO 2011 TRADES VIEW KO 2010 TRADES VIEW KO 2009 TRADES
ALL PORTFOLIOS INDEX U.S. STOCKS RETIREMENT PORTFOLIO CANADIAN STOCKS   CURRENT U.S. STOCK PORTFOLIO INDEX AT+T CLOROX COCA COLA INTEL CORPORATION JOHNSON & JOHNSON KRAFT FOODS MCDONALDS MERCK & COMPANY MICROSOFT NUCOR CORPORATION PEPSICO SPYDER ETF VISA EXXON MOBIL YUM! BRANDS   Should you find my strategy and ongoing evaluation of this trade of value I hope you will consider a tip for the time I spend detailing out this trade. I have set up a Paypal account for those who would like to donate. Thank you in advance. Remember, nothing on my site is financial advice. They are just my ideas and opinions. Investing is risky and losses can be large. Trade at your own risk. Read the terms of use     YEAR 1: 2009 - Trade Commenced May 1 2009 Goal for 2009: 8% (8 months) Strategy: Sell Naked Puts Until Assigned   Capital In Use At End Of 2009 102,000.00 Income Earned in 2009 (8 months) 12,895.00 Return On Capital in 2009 (8 months) 12.6% Join The Options Forum   I set up a Yahoo forum for those interested in discussing selling stock options for income including covered calls, selling naked puts, spreads and other option and stock strategies. JOIN HERE
TRADE COMMENCED May 1 2009 GOAL FOR 2009: 8%  (8 Months) ONGOING STRATEGY - REVERSE LADDER / SELLING NAKED PUTS UNTIL ASSIGNED

May 1 09	42.53	STO 10 Naked Puts Jun 45.00 @ 3.05	6.7			19.50			3030.50	3030.50
May 1 09	42.53	STO 5 Naked Puts Aug 40 @ 1.95	4.8			13.25			961.75	3992.25
May 1 09	42.53	STO 5 Naked Puts Aug 45 @ 3.95	8.7			13.25			1961.75	5954.00
May 1 2009: This is a ten year chart of KO. It has remained in a range between approximately $40.00 to a high above $60.00 Previous to this trade, I have been in KO longer than 10 years. During this time period it has consistently increased it's dividend. In 1999 it was paying .16 cents quarterly dividend. Today it is paying .41 cents quarterly. What a great performer it has been. I have included the volume chart to show how the volume continues to increase annually in this corporation. I believe it is a core holding and will work well for long term option strategy.
Jun 19 09	48.81	Expiry: 10 NP Jun 45 Expired
Jun 22 09	48.35	STO 10 Naked Puts Jul 47.50 @ .75	1.5			19.50			730.50	6684.50
Jul 17 09	50.32	Expiry: 10 NP Jul 47.50 expired
Aug 3 09	48.63	Sell 10 Sep $47.50 puts @ .75	1.5	0	46.77	19.50	0	0	730.50	7415.00
Aug 24 09	49.06	Expiry: 5 NP Aug 40 and 5 NP Aug 45 expired
Aug 26 09	49.07	Sell 5 Nov $45.00 puts @ .70	1.5	0		13.25	0	0	336.75	7751.75
Aug 26 09	49.07	Sell 5 Jan $40.00 puts @ .45	1.1			13.25			211.75	7963.50
Sep 18 09	53.76	Expiration: 10 Naked Puts Sep 47.50 expired		0			0	0
Sep 24 09	52.41	Sold 10 Naked Puts Feb $45.00 @ .70	1.5	0		19.50			680.50	8644.00
Nov 20 09	57.48	Expiry: 5 Naked Puts Nov 45 expired
Nov 27 09:Update:  Since early Nov 2009 the stock has taken off and is setting new 52 week highs. How can I decide where to sell my naked puts. My original strategy of selling below 50.00, is now difficult as there is very little premium. However, the question is, should I be concerned about writing the puts higher up or should I follow the stock? What steps should I take. Here is what I do: A) Look at the chart above. It is from Jun when the stock shot up from 45. I would say  the stock is a little over valued at 57 and 58 dollars. I have drawn a red line indicating that if there is a pull back I would expect it to be around the 56 area. The green line shows a fair value of around 53.00. B) The second chart above is a 3 year chart. It goes back beyond the credit crisis. Looking at the three year chart I can draw a line at the 50.00 strike which seems to be fairly strong support and the 53 which is the upper range before the break out in 2007 and again this year. Therefore I feel fairly confident that if there is a pullback, the 53.00 strike is a good point for writing covered calls. C) I will want to keep my break even around the $50.00 value. To do this I am writing a variety of put strike positions. The graph below show the various support levels and resistance values for Coca Cola. Again, this supports my selling naked puts around the 53.00 strike. That will put me between the 80 day support and 15 days support prices.
Nov 27 09	56.88	(STO) Sold 5 Naked Puts May $50 @ 1.00	2.0			13.25			486.75	9130.75
Nov 27 09	56.88	(STO) Sold 5 Naked Puts Jan 52.50 @ .35	.66			13.25			161.75	9292.50
Nov 27 09	57.05	(BTC) Closed 5 Naked Puts Jan 40 @ .05	(0.12)			13.25			(38.25)	9254.25
Dec 23 09	57.05	BTC 10 Naked Puts Feb 45 @ .06	(0.13)			19.50			(79.50)	9174.75
Dec 24 09	57.35	BTC 5 Naked Puts Jan 52.50 @ .06	(0.11)			13.25			(43.25)	9131.50
Dec 24 09	57.35	STO 5 Naked Puts Feb 57.50 @ 1.59	2.76			13.25			781.75	9913.25
Dec 24 09	57.30	STO 4 Naked Puts May 55.00 @ 1.94	3.5			12.00			785.50	10698.75
Dec 24 09	57.30	STO 3 Naked Puts Aug 52.50 @ 2.12	4.0			10.75			825.25	11524.00
Dec 24 09	57.33	STO 3 Naked Puts Jan (2011) 55 @ 4.38 COMMENTS: I have sold these not with the intension of them expiring worthless. I have sold these as I expect by the end of 2010 that Coke will probably be around 52.50 to 56 and I will close these for a profit.	7.9			10.75			1303.25	12827.25
Dec 31 09	57.00	STO 1 NP Feb 55 @ .76	1.3			8.25			67.75	12895.00
		End of 2009 - $12895.00

KO TRADES BY YEARS VIEW KO 2011 TRADES VIEW KO 2010 TRADES VIEW KO 2009 TRADES