2013 marks the fifth year of Coca Cola Stock being in my Put Selling US Stock Portfolio. To date I have only had Coca Cola stock assigned or purchased a few times. Primarily I have been been Put Selling at the money and just out of the money against Coca Cola Stock.
Since I have been Put Selling against Coca Cola Stock for 5 years I have now earned almost $40,000 which means that often the cost basis of any puts if assigned would be zero as long as I continue to sell just enough puts to be paid for by the capital I have earned to date.
This is an ideal situation for this trade. Each month I continued to earn capital which increases the number of puts I can sell but because I have already earned almost $40,000 in income by the start of 2013, my cost basis is so low in Coca Cola Stock that assignment of shares is of no further real concern.
Coca Cola Stock 5 Year Chart
The five-year chart below shows the steady recovery of Coca Cola Stock from March 2009. July 2012 saw the stock hit a new five-year high of $40.67 and ever since the stock has been struggling to recapture that high. The split on August 12 2012 took some toll on the stock which is common with splits. Normally there is a run up in a stock into the split and then a pullback afterwards. Investors trade primarily on emotion and the thought of a split always gets investors excited especially with a big name stock like Coca Cola Stock. I expect the stock will recover the high some time in 2013.
Coca Cola Stock (KO Stock) Investment Strategy
The investment strategy for Coca Cola Stock (KO Stock) is Put Selling as explained above, at what I believe is fair value and if assigned shares, collect the dividend while selling covered calls to be exercised out of the stock. I have a large holding of Coca Cola Stock in my retirement portfolio which I bought more than 25 years ago. I primarily use the Hide and Seek Covered Calls Strategy for these holdings. 2013 should be exciting.
Coca Cola Stock (KO Stock) Trades For 2013 – Year 5
|Coca Cola Stock (KO Stock) TRADE STATS:
Capital Currently In Use: $56,275.00
Income Earned in 2013: $11568.00
Total Income Earned Since Trade Started In 2009: $50,275.50
Total Of My Own Capital Required If All Naked Puts Were Assigned: $5999.50
Number Of Shares If All Naked Puts Were Assigned: 1500
Share Price Valuation(Total Capital Required/Number of shares): $3.99
|REVIEW PRIOR YEARS:|
|Review Coca Cola Stock Trades For 2012|
|Review Coca Cola Stock Trades For 2011|
|Review Coca Cola Stock Trades For 2010|
|Review Coca Cola Stock Trades For 2009|
|Review All Portfolios for US Stocks|
|Review All Portfolios for Canada Stocks|
|Review All Retirement Portfolios|
|SELECT TO REVIEW ALL MY STOCKS|
|Action Taken (All Figures Are US Dollars)
ACTIVE TRADES ARE HIGHLIGHTED
|Jun 1 2012
||73.25||Sold 5 Coca Cola Stock Naked Puts 19JAN13 $72.50 for $3.45 (these are now 10 X $36.25 strikes after the 2:1 split) (status: expired)
|Sep 25 2012
||37.66||Sold 3 Coca Cola Stock Naked Puts 18JAN14 $32.50 for $1.92 (BTC Dec 20 for 3 cents)
COMMENTS: This trade is a result of my buying back the January 2013 $55 naked puts (now at $25 after the stock split) for .05 cents. I took some of this capital and applied it to another set of leap puts.
|Nov 15 2012||35.95||Sold 10 Coca Cola Stock naked Puts 19JAN13 $35.00 for .62 (status: expired)
|Dec 31 2012||35.68||Sell To Open (STO) 5 Naked Puts Coca Cola Stock 16FEB13 $35 for .65
Comments: To understand this trade please read this article.
|The above are the remaining four trades from 2012. You can review Coca Cola Stock 2012 Trades through this link. Total capital earned in 2012 = $11865.50 / $98522.50 capital in use = 12.3% return|
|All Coca Cola Stock Trades Below Are in 2013
Commission $1.00 per contract + $5.00 per trade
|Jan 18||37.70||January Options Expiry: $36.25 and $35 naked puts expired|
|Feb 15||36.57||Bought 500 shares of Coca Cola Stock for $36.75 (sold Mar 8 for $39.30)||5.00||500||(18380.00)|
|Feb 15||36.57||Sell To Open (STO) Put Selling 5 Coca Cola Stock Naked Puts 20APR13 $35 Strike for $.41 (status: expired)
Comments: Read This article to understand this trade.
|Mar 8||39.30||Sold 500 shares Coca Cola Stock for $39.30||5.00||0||19645.00||1265.00||40167.50|
|Mar 13||38.55||Sell To Open (STO) Put Selling 6 Coca Cola Stock Naked Puts 18MAY13 $37.50 Strike for $.50 (BTC May 2 for 3 cents)
|Apr 5||40.08||Sell To Open (STO) Put Selling 5 Coca Cola Stock Naked Puts 20APR13 $40.00 Strike for $.55 (status: expired)
|Apr 15||40.11||Sell To Open (STO) Put Selling 10 Coca Cola Stock Naked Puts 18MAY13 $40.00 Strike for $.80 (status: expired)
|Apr 19||42.66||April Options Expiry: $37.50 and $40 naked puts expired|
|May 2||41.56||Sell To Open (STO) Put Selling 10 Coca Cola Stock Naked Puts 22JUN13 $40.00 Strike for $.51 (status: stock assigned at $40 on Jun 22)
|May 2||41.66||Buy To Close 6 Naked Puts Coca Cola Stock 18May13 $377.50 strike for .03||11.00||(29.00)||41932.50|
|May 17||42.97||May Options Expiry: $40 naked puts expired|
|Jun 20||39.00||Sell To Open (STO) Put Selling 10 Coca Cola Stock Naked Puts 20JUL13 $39 Strike for $0.84 (status: expired)||15.00||39015.00||825.00||42757.50|
|Jun 22||39.55||Sell to Open (STO) Put Selling 10 Coca Cola Stock Naked Puts 20JUL13 $39 strike for .57 (status: expired)||15.00||39015.00||555.00||43312.50|
|Jun 22||39.76||Options Expiry: 1000 shares Coca Cola Stock Naked Puts assigned at $40.00 (sold for $41 on Jul 12)||20.00||(40020.00)|
|Jul 12||41.00||Sold 1000 shares Coca Cola Stock for $41.00||5.00||40995.00||975.00||44287.50|
|Jul 16||39.50||Sell To Open 10 Naked puts Coca Cola Stock Naked Puts 17AUG13 $39.00 strike for .55 (status: BTC Aug 9 for 6 cents)||15.00||39015.00||535.00||44822.50|
|Jul 19||41.09||July Options Expiry|
|Aug 9||40.20||Buy To Close (BTC) 10 naked puts Coca Cola Stock 17AUG13 $39 strike for .6 cents||15.00||(75.00)||44747.50|
|Aug 15||39.05||Sell To Open (STO) Put Selling 10 Coca Cola Stock Naked Puts 19OCT13 $38 Strike for $.71 (status expired)
|Aug 15||39.05||Sell To Open (STO) Put Selling 5 Coca Cola Stock Naked Puts 21SEP13 $39 Strike for $.85 (status: expired)
|Sep 20||38.80||Sell To Open (STO) Put Selling 5 Coca Cola Stock Naked Puts 19OCT13 $38 Strike for $.51 (status: expired)
Comments: Read this article to understand this trade.
|Sep 20||39.40||Sep Options Expiry $39 options expired|
|Oct 3||37.15||Bought 500 shares of Coca Cola Stock at $37.15 (status: sold Oct 11 for $37.75)
Comments: The trade alert was on twitter
|Oct 7||36.88||Bought 500 shares of Coca Cola Stock at $36.88 (status: sold Oct 11 for $37.75)
Comments: This trade alert was on twitter
|Oct 7||36.88||Sell To Open (STO) 5 naked puts on Coca Cola Stock 16NOV13 $36 for .75 (status: expired)
Comments: This trade alert was on twitter
|Oct 7||36.88||Sell to Open (STO) 5 naked puts on Coca Cola Stock 17JAN15 $35.00 for $2.80
Comments: This is my leap trade for 2013.
|Oct 11||37.75||Sold 1000 shares of Coca Cola Stock for $37.75||5.00||0||37745.00||720.00||48577.50|
|Oct 18||38.78||October Options Expiry: 15 $38 put strikes expired|
|Nov 5||39.30||Sell To Open (STO) 10 naked puts on Coca Cola Stock 21DEC13 $38.00 for .38 cents (status: expired)||15.00||0||38515.00||365.00||48942.50|
|Nov 15||40.22||Nov Options Expiry: $36 puts expired|
|Dec 18||39.40||Sold 10 naked puts on Coca Cola Stock 18JAN14 $38.75 for .50 cents||15.00||0||38765.00||485.00||49427.50|
|Dec 18||39.40||Bought 500 shares of Coca Cola Stock for $39.40 (status: Sold Dec 31 for $41.15)
|Dec 20||40.04||Dec Options Expiry 10 naked puts $38.50 expired|
|Dec 20||40.04||BTC 3 Naked Puts $32.50 18JAN14 for 3 cents – this closes the leap trade of Sep 25 2012||8.00||(17.00)||49410.50|
|Dec 31||41.15||Sold 500 shares of Coca Cola Stock for $41.15 to end stock ownership in 2013 and not carry it into 2014.||5.00||0||20570.00||865.00||50275.50|
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