Coke Presents a Put-Writing Opportunity

Coca-Cola (KO) went ex-dividend for a 25.5-cent quarterly payout Wednesday, and the stock fell briefly to as low as $36.80. This iconic name had more than doubled from its March 2009 low going back to just before a recent 2-for-1 split. Since then, it had gradually retreated and was sitting at $36.85 at 10 a.m. Wednesday.

Coke is a classic example of how even the best companies can be both good and bad investments, depending on how well you buy on a valuation basis. Those who bought and held at 2003's low point saw almost no gains six years later, early in 2009. The poor returns came after these buyers paid a not-very-cheap 22.3x P/E, which was halved at 2009's bottom....321 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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