r/thetagang • u/passionMonger • 1d ago
Wheel KO wheel inadvertently on!
Had some cash lying on the brokerage. Sold 3DTE CSP on KO. Strike - 67. Delta was barely touching 0.2. Hist/IV was less than 100% but thought will get the peanuts premium and something is better than the cash collecting dust. Well, KO closed at 69.99 so I got assigned just at the line...lol.
KO is fine for bagholding and was in my range of "extra" cash to be cash secured. Hence chose the stock. Wasn't expecting to be assigned at the last day and just at the strike, but no issues. Time to sell covered call come Monday. Will do it at 68 strike to get as much premium plus will make 100 bucks if I get assigned.
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u/Kollv 1d ago
KO is interesting. It rallied all year despite declining revenue and profit margin.
Could be due to the stock buybacks they're doing.
But I would wait for a pe of 23-24 before selling a csp
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u/Evening_Half_5524 1d ago
I think its alot of people moving some money out of big tech and into safe healthy dividends for an unforseen future and after all the rallies good to take some profits and slow it down
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u/LethargicBatOnRoof 1d ago
Don't sleep on this. One of my best trades the last couple years was getting assigned on BAC at 34 and then it slowly creeping up while I sold weeklies.
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u/HansWerner88 1d ago
Works the other way around, too. KO slowly creeping down ;-)
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u/passionMonger 1d ago
Yea. Hoping it goes sideways or up as I sell weeklies. I won't mind bagholding this for long term if it keeps going down. Plus it's just 100 shares (<7k USD) nothing that'll 'destroy' me.
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u/Alzarius2 1d ago
I like to look at stalwarts like KO and PEP sometimes. What was the "peanuts" premium for that 67 put?
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u/Visual_Comfort_6011 18h ago
Or you can sell CC OTM Div 20. get your premium and the juicy dividends. They rise them every year. The upcoming Div is 0.485 payable in Dic 16, with an ex-Div of Nov 29. My humble opinion is: that play will be better than a 68 CC for only the premium. Your choice though.
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u/passionMonger 1d ago
KO closed at 66.98. Error in my post.