Option Bulls See a Strong Week for The Coca-Cola Company (KO)

The Coca-Cola Co (KO) speculators target weekly 1/9 42.50-strike calls

Digital Content Group
Jan 5, 2015 at 2:37 PM
facebook X logo linkedin

Morgan Stanley weighed in on The Coca-Cola Co (NYSE:KO) today, bumping its price target to $47 and raising its outlook on the stock to "overweight" from "equal weight," stating that it expects the company's recent strategy changes to lead to improved results. In response, KO is up 0.5% at $42.34, and is just one of two Dow components in positive territory this afternoon.

In the security's options pits, speculators have been placing mostly bullish bets, with calls crossing at three times what's typically seen at this point in the day. This preference for calls is nothing new, per the stock's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 4.16. This reading ranks only 1 percentage point from an annual bullish peak, implying that calls have rarely been bought to open over puts at a faster rate.

Taking a closer look, the most popular strike today is the weekly 1/9 42.5-strike call, where 11,451 contracts have been exchanged. Most of this activity appears to be of the buy-to-open variety, meaning the traders expect KO to break north of $42.50 by Friday's close, when the weekly series expires.

The analyst community, however, is still mixed toward The Coca-Cola Co (NYSE:KO). Of the 15 analysts covering the stock, seven rate it a "buy" or better, with another seven dishing out "holds," and one issuing a "sell" recommendation.

Weekly Chart of KO

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI