KO has cleared a key trendline today and could have support at a year-to-date level
Shares of Coca-Cola Co (NYSE:KO) are up 2.6% to trade at $70.25 at last glance, after the company posted adjusted third-quarter earnings of 82 cents on $12.4 billion in revenue, both of which topped analyst expectations. The beverage giant cited impressive demand for its zero-sugar drinks, helping overshadow declining unit volume.
KO is heading for a third-straight win, extending a climb off late-September lows at $66. The shares have also broken above resistance from their 80-day moving average, a trendline of resistance since June. Year-to-date, Coca-Cola stock has added 10%.
Short-term options traders have been leaning optimistic. This is per the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.47, which stands in the 12th percentile of annual readings.
Options are looking affordable too, and could get even cheaper in a post-earnings volatility crush. Traders are pricing in relatively low volatility expectations per the KO's Schaeffer's Volatility Index (SVI) of 20%, which ranks in the 22nd percentile of readings from the past year.