Schaeffer's 43rd Anniversary Stock Picks in 2024

Options Bulls Blast Coca-Cola Stock Amid Fresh Record

The blue chip is among Guggenheim's top beverage stocks for 2022

Digital Content Manager
Jan 4, 2022 at 10:20 AM
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Coca-Cola Co (NYSE:KO) is up 1.8% at a record $60.34 at last check, after the blue-chip concern received an upgrade from Guggenheim to "buy" from "neutral," as the firm picked its favorite beverage stocks for 2022. The analyst in question expects traders to rotate back to non-alcoholic names this year, amid stronger pricing, as well as jumping restaurant and bar sales, which may help the beverage sector recover from last year's underperformance.

What's impressive about this bull note is that the brokerage bunch was already firmly bullish towards Coca-Cola stock coming into today. Of the 29 analysts in question, 20 called KO a "buy" or better, while the remaining nine carried a lukewarm "hold" rating.

The equity has been on a steady climb since bouncing off the $52 level in December, with support from the formerly resistant 10-day moving average. Shares are now pacing for their fifth win in six sessions, in addition to their highest close in history. Over the last three months, KO has added 13.5%.

Options bulls are blasting Coca-Cola stock in the options pits today. So far, 18,000 calls have crossed the tape, which is four times what is typically seen at this point. The most popular contract is the February 62.50 call, where positions are being opened, followed by the weekly 1/7 60-strike call.

Now might be an excellent opportunity to speculate on Coca-Cola stock's next move with options. The equity sports a Schaeffer's Volatility Index (SVI) of 13%, which stands in the 10th percentile of its annual range. This indicates options traders' volatility expectations aren't high at the moment. 

 

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