I Sold 1 KO Feb 22 ’14 $38 Put @ 1.67
This trade could turn out a few ways:
1) I hold shares until expiration and shares are trading above $38.00. I will get to keep the $167 in options premiums.
2) KO is trading below $38.00 at or before expiration and shares are assigned. I will receive 100 shares of KO at a cost of $36.33/share. This is a discount of 6.3% to where the stock is currently trading and 8.3% below my cost basis of $39.62/share.
3) Shares of KO go on a run and I decide to buy back the put early for a profit less than $167.
I currently have 14 open options positions and a total options profit of $3486 for 2013. My options page has been updated accordingly.