OptionsHouse

Options Trading News

December 18, 2012  Tue 10:34 AM CT

KO: SEE CHART GET CHAIN FIND STRATEGIES
A unusual long-term play is bullish on Coca-Cola.

optionMONSTER systems show that a trader sold 3,000 January 2014 35 calls for $3.52 against open interest of more than 19,000 contracts. At the same time, the trader bought 6,000 January 2015 32.5 calls for $5.91 in volume that dwarfed open interest of 821 at that strike, clearly a new position.

This could be a new diagonal call spread, with the sale of the nearer-term calls to help offset some of the cost of the longer-term calls. Or this could be rolling a long-call position lower to the later-dated contracts in response to the stock's recent declines.

KO is flat on the day at $37.50. The beverage giant was above $40 into early August but has lost ground in the last few months.
Share this article with your friends


Related Stories

KO

Is Coca-Cola getting ready to pop?

February 20, 2015

The stock has been bouncing in a range since mid-December, gapping up before quarterly results on Feb. 10 but falling since that release.

OptionsHouse

Premium Services

Webinar Recording

Turbo Charge Your Trading Profits

Education & Strategy

The Strike-Based Greeks

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

View more education articles »