Preheat the oven to 400°F (200°C). Line a rimmed baking sheet with parchment paper or foil.

Place the 1 pound chicken breast strips in a bowl and drizzle with the 2 tablespoons extra virgin olive oil; toss to coat evenly.

In a small bowl, combine 1/2 teaspoon salt, 1/4 teaspoon pepper, and 1 cup coconut flakes (unsweetened or shredded).

Working one strip at a time, press each oiled chicken strip into the coconut mixture so the coconut adheres to all sides. Arrange the coated strips in a single layer on the prepared baking sheet.

Bake in the preheated oven for 30 minutes, flipping the strips once halfway through (about 15 minutes), until the strips are golden brown and cooked through (no pink inside).

If making the sauce: in a small bowl stir together 1/2 cup ketchup, 2 tablespoons lite soy sauce, 2 tablespoons water, and 1/4 teaspoon pepper until combined.

Serve the baked coconut chicken strips immediately with the sauce.