KO - Adjustment

The following adjustment was made today on Coca Cola Company (KO):

08-Jun-09 - Buy Back and Roll Out - BTC 1 Jun09 45.00 Call @ -4.31 -
08-Jun-09 - Second Stock Position - BTO 100 KO @ 49.23 -
08-Jun-09 - Combined Cost Basis - $9,944.99 200 @ 49.72 -
08-Jun-09 - Interim Trade - STO 2 Jul09 47.50 Call @ 2.24 -
01-Jul-09 - Dividend Received - DIV 200 Dividend @ 0.41 -

Ex-dividend date for KO is 6/11 and they will pay a $0.41/share dividend on 7/1. The Jun09 45 call was ITM with less than $0.41 time value remaining and was therefore in danger of an early exercise to capture the dividend. Since I was unable to get a net credit by simply rolling to a Jul 45 call, and since KO is one of my core holdings, I decided to average down and buy an additional 100 shares. I was then able to roll up by selling 2 Jul 47.50 calls for a net credit of $17 plus the $82 for two dividends for a total credit of $99.

Current Position Summary:

Stock Investment: $9,944.99
Income Generated: $874.60
Percent Income Generated: 8.79%
Annualized Income Generated: 10.84%
Net Profit If Called: $429.61
Percent Return If Called: 4.32%
Annualized Return If Called: 5.33%
Days Held to Expiration: 296 days

Trade History:

24-Sep-08 - Initial Stock Position - BTO 100 KO @ 50.22 -
24-Sep-08 - Initial Call Option - STO 1 Oct08 50.00 Call @ 1.59 - Expired
20-Oct-08 - Interim Trade - STO 1 Nov08 50.00 Call @ 0.79 - Expired
24-Nov-08 - Interim Trade - STO 1 Dec08 50.00 Call @ 0.48 - Expired
15-Dec-08 - Dividend Received - DIV 100 Dividend @ 0.38 -
22-Dec-08 - Interim Trade - STO 1 Jan09 47.50 Call @ 0.55 - Expired
22-Jan-09 - Interim Trade - STO 1 Mar09 47.50 Call @ 0.63 - Expired
24-Mar-09 - Interim Trade - STO 1 Apr09 45.00 Call @ 0.80 - Expired
01-Apr-09 - Dividend Received - DIV 100 Dividend @ 0.41 -
17-Apr-09 - Buy Back and Roll Out - BTC 1 Apr09 45.00 Call @ -0.21 -
17-Apr-09 - Interim Trade - STO 1 May09 45.00 Call @ 1.40 - Closed
15-May-09 - Buy Back and Roll Out - BTC 1 May09 45.00 Call @ -0.06 -
15-May-09 - Interim Trade - STO 1 Jun09 45.00 Call @ 0.99 - Closed
08-Jun-09 - Buy Back and Roll Out - BTC 1 Jun09 45.00 Call @ -4.31 -
08-Jun-09 - Second Stock Position - BTO 100 KO @ 49.23 -
08-Jun-09 - Combined Cost Basis - $9,944.99 200 @ 49.72 -
08-Jun-09 - Interim Trade - STO 2 Jul09 47.50 Call @ 2.24 -
01-Jul-09 - Dividend Received - DIV 200 Dividend @ 0.41 -