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

All information on this blog is for entertainment, and education information purposes only. Nothing discussed constitutes as financial, investment, trading, tax or any other advice. No decisions should be made based on the information provided. Always do you own independent research and consult a professional broker or financial advisor.

I own everything I discuss. I am not getting paid anything to mention anything.

Update Mar 28, Apr 04, Apr 11 (week 56+57+58)

 Added

As outlined as time I added GOOGL the week of Mar 28.

Review

I took a weekend off and visited a friend on the coast. We had a great time. When I got back, I found out I need to take over a project from a colleague leaving the company. Live throws curve balls we have to deal with. So the sum of investable money is now 300$.

With the spin-off of WBD from ATT, there were plenty of dividends coming in over the past 3 weeks. I did account the portion of "in lieu of shares" as dividend to WBD. Is that accurate? No, but without the spin-off the money would not have hit my account.

Plans for next week

As there are 3 weeks  to be invested, they will go $100 each into QYLD/RYLD/XYLD on Monday. I just need an easy solution for now.

Disclaimer

All information on this blog is for entertainment, and education information purposes only. Nothing discussed constitutes as financial, investment, trading, tax or any other advice. No decisions should be made based on the information provided. Always do you own independent research and consult a professional broker or financial advisor.

I own everything I discuss. I am not getting paid anything to mention anything.

Update Mar 21 (week 55)

 Added

There was nothing to add last week. I already jumped the ging the week before.

Review

This was the picture from 1 week ago:

Where we are today

We are nose bleed right at the 50% gib retracements. I would not be surprised to see some kind of retracement back to the $434ish level. That is 50% for the last leg up.

We will see.

Plan for next week

GOOG and AMZN announces splits. This is not the only reason why I am starting a GOOG position. I already have/had GOOG and AMZN positions on and off.

I am adding 100$ in GOOG this week.

Disclaimer

All information on this blog is for entertainment, and education information purposes only. Nothing discussed constitutes as financial, investment, trading, tax or any other advice. No decisions should be made based on the information provided. Always do you own independent research and consult a professional broker or financial advisor.

I own everything I discuss. I am not getting paid anything to mention anything.

Covered Strangle: KO-Mar-22

 Mon/Tue it was time to sell new options. There was nothing left to gain

Income from the last option set 85c.

This time

STO Apr 22, 57P for 42c

STO Apr 22, 63C for 42c

KO was ex-div 3/14 for 44c. So I add them to this return.

$(42+42+44)/6152 = 2.08% for 31 days

Time to sit back and let the trade work.

Update Mar 14 (week54)

Added

As planed I added 100$ in MFC to the account.

Review

I never got an answer for the one picture I wanted to use in my post. So I will stick with my own analysis. This is how the big 5 and the VIX look like:

The interesting thing is, IWM looks different then SPY/DIA and QQQ. EEM is still in a downtrend, but starts to show some signs of a reversal. A lot of tickers show a W pattern either about to break out or already breaking out.

On SPY one can make an argument for a breakout already. 

Plan for next week

I already did next week's trade. I decided it is time to add a $100 back in AVGO. So nothing to do next week other than collecting dividends.

Update Mar 07 (week 53)

Added

As planed 100$ went into CSCO.

Review

This week I collected $3.51 from AMGN, ALTY, PRU and WBA, YTD $65.47 and since inception $121.81.

In Fidelity the account is still up almost 5%. My spreadsheet says otherwise. I think, I got to review my spreadsheet.

Plan for next week 

I add another 100$ to MFC.

Update Feb 28 (week 52)

Added

As planed I added 200$ to EXG.

Review

This weeks dividends were $12.61, YTD $61.96, since inception $118.30

Since inception the account is still up.

Plan for next week

I am adding the 100$ to CSCO.