Coca-Cola draws long-term spread
Chris McKhann | [email protected]
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.