We’re reducing the negative delta bias of our KO portfolio, as a percentage of total capital at risk, from about 15% to approximately 8.5% with the following closing trade:
Day limit order
Buy to close 2 KO Sep 57.5 puts
Sell to close 2 KO Oct 57.5 puts
Buy to close 2 KO Sep 55 puts
Sell to close 2 KO Oct 55 puts
for a net credit of $0.80 or better.
Note that the 2 contracts specified above represent our entire position in this trade. We still have positions at the 57.5 and 60 strikes from our other two September KO trades.
*NOTE: As a Supplemental Trade, this trade is optional and is primarily intended for more experienced/risk-tolerant subscribers. It will not be autotraded, and it has no bearing on our core newsletter portfolio. And, naturally, any member who did not choose to participate in this position would not place the above closing order.