2 Covered Call Ideas on KO Stock

In the current market environment, investors might be more interested in generating income rather than capital gains.

Today, we're looking at two covered call examples on Coca-Cola stock. The first step to finding our covered call candidates is to use the Stock Scanner with the following parameters:

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Coca-Cola (KO) is up 10.63% in the last three months and is currently showing a dividend yield of 2.64%. The stock also has a high IV Percentile which means options are expensive compared to the recent past.

Using options, we can generate an additional income from high yielding stocks via a covered call strategy.

Let's look at two different covered call examples on KO stock. The first will use a monthly expiration and the second will use a seven-month expiration.

Let's evaluate the first KO covered call example.

Buying 100 shares of KO would cost around $8,263. The

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/options/articles/2-covered-call-ideas-ko-110002985.html)