Market News

October 19, 2016  Wed 5:16 AM CT

A large trader apparently believes that upside potential is limited in Coca-Cola.

optionMONSTER's monitoring programs show that 4,249 Weekly 42.50 calls expiring on Nov. 11 were sold in one print for $0.46 yesterday. This is clearly a new position, as open interest in the strike was just 278 contracts before the trade occurred.

Short calls generate income and lock in the price where a stock must be sold. The trade is usually done in conjunction with long shares in a covered-call strategy, reflecting a belief that gains will be limited through expiration. (See our Education section)

KO rose 0.89 percent to $41.97 yesterday but is down 9 percent in the last three months. The beverage giant
is scheduled to announce quarterly results in pre-market hours on Oct. 26.

Overall option volume was about average in KO yesterday.

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