Coca-Cola Stock Eyes Ceiling After Top-Line Beat

The stock is climbing back toward its December peak today

Digital Content Manager
Apr 19, 2021 at 10:26 AM
facebook twitter linkedin

Blue-chip beverage behemoth Coca-Cola Co (NYSE:KO) kicked off the earnings slate this week. The company posted earnings and revenue that beat estimates, citing strong product demand fueled by relaxed lockdown restrictions, specifically in Asia. Coca-Cola noted that demand has returned to its pre-pandemic levels, though the firm's CEO did warn that an extra degree of lockdowns could put pressure back on the business. At last check, KO was up 0.5% at $53.99 in response.

Coca-Cola stock has been bounding back toward its late-December annual high of $54.93, though pressure near the $54 level has continued to keep a lid on the shares. Several layers of support exist just below, however, including the 20-day moving average. KO is up 11.5% in the past 12 months. 

Several analysts chimed in with price-target hikes, including Jefferies to $56 from $53. Many members of the brokerage bunch remain hesitant, though. Of the 14 in coverage, six consider KO a "hold." The 12-month consensus price target of $58.05, meanwhile, is a 7.7% premium to current levels. 

Option traders have been a bit more bullish than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), KO sports a 50-day put/call volume ratio of 3.69, which stands higher than 68% of readings from the past year. This means these speculators have been picking up calls at a quicker-than-normal clip. 

This trading has picked up today, with 19,000 calls and 8,673 puts across the tape so far -- triple the intraday average. The most popular is the weekly 4/23 54-strike call, where positions are being sold to open. This suggests these traders are expecting the $54 level to remain as pressure for the underlying equity by the time these contracts expire at the end of the week. 


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners