16d • General discussion
📉 KO Covered Call — Why We’re Closing It Out
Let’s break this down in simple terms so you can clearly see how this works.
🧠The Setup (What We Did)
- Stock: Coca-Cola (KO)
- We own: 300 shares
- Sold: 3 × $80 Calls
- Expiration: Apr 17, 2026
- Premium collected: $267.99
👉 Think of this as collecting 3 deposits upfront
📊 Where We Are Now
- Days left: 3
- Current option value: $2.00 per contract
- Total to close: $6.00
- Profit: +$261.99
- Return: ~97% max profit
💡 What This Means
We sold 3 contracts and collected $267.99 total
Now those same contracts are only worth $6 combined
👉 That means:
- The buyer lost almost all the value
- We’ve already captured almost the full profit
🔑 Why We Close Early
Even with a few days left…
We don’t wait around for the last few dollars.
We close because:
- ✅ 97% of profit is already captured
- ✅ Avoid last-minute volatility
- ✅ Lock in gains
- ✅ Free up capital for the next trade
💰 The Reality
- Collected: $267.99
- Cost to close: $6.00
👉 Net Profit: ~$261.99
🎯 The Big Lesson
This is the real edge:
Don’t chase the last few dollarsTake the win and move on
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📉 KO Covered Call — Why We’re Closing It Out
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