Consumer Staples
KO
The Coca-Cola Company
Conservative income from Coca-Cola (KO) with covered calls and cash secured puts. Dividend King with 60+ years of increases.
Monthly Premium0.7-1.3%
Annualized Return8-16%
Stock Price$62-68
IV RankVery Low (15-25)
Options LiquidityGood
Dividend Yield2.9%
Why KO for Covered Calls & Cash Secured Puts?
KO is a Dividend King with 60+ consecutive years of dividend increases. Extremely stable business makes it perfect for conservative income investors prioritizing capital preservation.
Example Covered Call Trade
KOCovered Call
Strike Price$67 (4% OTM)
Expiration30 days
Premium$0.75 per share
Return If Flat1.2% ($75)
Return If Called5.0% ($325) + dividend
Keep Probability76% keep shares
Recommended Strategy for KO
Ultra-conservative calls 3-4% OTM. KO is best for those wanting defensive consumer staples exposure with income.
Risks to Consider
- Very low premium
- Sugar/health concerns
- Currency exposure
- Consumer taste changes
Analyze KO Covered Calls Now
Use our free calculator to find the optimal strike price for your goals
Open Calculator