Covered Strangle KO-Apr-22 (and closing remarks)

KO went up in a straight line since the beginning of March. basically 10 $ since 3/10. The upcoming Monday KO has earnings. Who knows what will happen there.

As one can see my short put option I bought back 10 days ago for 2 cents. And the current stock price is way over the short call I sold. This means, I will loose the stock on the weekend. This is ok for me. This is  for income with an investing component.

Unless KO trades below 63$ Fri 6pm, I am loosing the stock. It is unlikely to me, that we will be below 63$ at 6pm Fri, but stranger things have happened.

Note, what I am doing here, is mentally booking profits, that I do not have in my account until settlement on Monday. This can play numbers on the mind and confidence.
Let's recap the trade:

I bought 100 shares of KO for $6,162 and I will be selling them for 63$, this is a 138$ gain. There was a 44$ dividend payment, that makes it 182$ gain. In February I sold options for 85$, which I bought back in Mar for 4$ = 81$ income. This makes total return 263$. In March I sold 84$ worth of options, where I bought 1 option back for 2$ = 82$. Now income is at 345$. Total percent return $345/$6,162=5.5%. 
Trade duration 2/15 till 4/23. 
Now this does not include commissions.

Disclaimer

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