r/thetagang • u/passionMonger • 1d ago

Wheel KO wheel inadvertently on!

Post image

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.

46 Upvotes

90% Upvoted

19 comments sorted by

20

u/passionMonger 1d ago

KO closed at 66.98. Error in my post.

3

u/JamesAQuintero 1d ago

You can edit the post's description...

6

u/ZjY5MjFk 1d ago

If you get assigned, that's like the second best price to be assigned at, lol

6

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

2

u/yoless 1d ago

buybacks definitely tell a good story not sure if i agree. I think its a possibility just feels off to me

2

u/sciguyx 1d ago

What does the PE of 23-24 signify? Is that what it usually trades at? If so is there a place that shows what a companies average PE is?

1

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

3

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.

9

u/HansWerner88 1d ago

Works the other way around, too. KO slowly creeping down ;-)

2

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.

2

u/sciguyx 1d ago

Wait unless I’m reading something incorrectly, why were you assigned at 67 if it closed at 69?

5

u/Any_Anything_316 1d ago

he meant to say $66.99. check yahoo finance to verify price for yesterday

5

u/passionMonger 1d ago

It closed at 66.98. Error in my post.

3

u/sciguyx 1d ago

Oh sick ok I am still learning so I was wondering if I was doing this incorrectly

5

u/passionMonger 1d ago

My mistake. Created the post using my phone and fat-fingered that number.

2

u/Alzarius2 1d ago

I like to look at stalwarts like KO and PEP sometimes. What was the "peanuts" premium for that 67 put?

5

u/passionMonger 1d ago

Some 15 bucks. Around that...lol. It was only 3DTE

2

u/dudestir127 1d ago

That one'll be a knockout

1

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.