Last Friday (12/16) I rolled KO for the 4th time. I would like to say that I am incredibly good at picking underlyings for Naked Puts, but the truth is I’ve had a great run on this stock and I’m going to milk it for every drop I can.
The table below details all the monthly rolls beginning with the first roll on 9/14. All have been at the same 67.50 strike, even though the price of the underlying moves above and below during that period.
I’m not in love with Naked Puts, since they require a huge amount of capital to be available, but remember my original intent was to take possession of this stock if necessary – but in the meantime collect the credit offered by selling the Puts. Fortunately, the stock price ends up at just the right place come expiration and I am able to roll to the next month for a very healthy credit. Someday it will be ITM and I will just allow the stock to be put to me.
I made a video on the actual roll this month (again) and it provides a little extra information on my methodology and technique if you watch it.
Please feel free to comment.
◄Jeff►
