Well this was a fun trade! Honestly I was very confident this trade was going to result in some large gains, just didn't expect them to happen so quickly, but I will take it. Now let's get to the breakdown. I am going to post the "before" chart first and give you an idea of what exactly I was looking at, then provide the after chart and where my price targets were coming from.
Above is the original chart I was eyeing on Friday March 8th. I really liked the $44.50 support level that KO had and felt like this level was extremely strong. Combining that with the fact that KO is a staple stock and it isn't going anywhere and the fact that KO option greeks are amazing, this trade was a no brainer. I had set multiple price targets based off personal resistance points I saw on the chart. I had three of them, first price target was $45.60, then $46.20, then $46.70. I also had a mental stop loss on the break of that strong support level of $44.50s and I entered the trade at $44.70. Now let's check out the "after" chart.
As you can see from the chart above, I have my lines drawn out on the chart that indicate the different resistance points and price targets I had for the stock. Had a great run-up on Monday after I bought Friday and already found myself up considerably mid-day after blowing through my $45.60 price target. I ended up exited out of half my position at 100% gains so I could lock it in and ensure if the stock started to slide I wouldn't be giving up all of my gains.
You can see the next two days the stock seemed to kinda get stuck at my second price target of $46.20, I had a 4/18 expiration so I was willing to let this play out a little further to see if I could get the break I was looking for. About mid-day today I decided to exit the other half of my shares right at $46.20 price target as I was unsure if it was going to break, but more importantly I knew today was KO's ex dividend date, this usually means you will see a drop in KO's price at least the amount of the dividend payout. I figured it would be better for me to fully lock in the remainder of my gains at 105% and then look at potentially buying this back for future long calls after the dividend stuff simmers down.
Excellent trade that played out about as I expected, was able to fully exit the position for 102.5% gains in less than 3 trading days! Hopefully you found this post informative, if you have any questions let me know!