Learn the trade here. Make it on tradeMONSTER

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

Volatility play targets Coca-Cola

April 15, 2014

Shares of the beverage giant are jumping after its earnings report today, while an odd combination trade is designed to profit from volatility.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Options and high-frequency trading

There has been much talk lately of high-frequency trading (HFT) and what it does--or doesn't--mean to the markets and retail...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER