Friday, September 11, 2009

Unusual Options Trading in Coca-Cola (KO)

Options volume in The Coca-Cola Cola (NYSE: KO) is much more active than normal.  Coke is not one of the more volatile names where you generally see options volume.  The September $52.50 CALLS traded 10,248 versus open interest of 7,588, the second day of large bullish call buying. Also, 12,000 OCT-2009 $52.50 calls trading and 4,967 OCT-2009..55 calls with both exceeding open interest.  Shares are definitely breaking out of consolidation here and look to be targeting above $52.50.  There does not appear to be any upcoming catalysts, but it is a name the Buffett is always involved with, and earnings should come before October options expiry.  This could be more of a major technical call and feeling that a soft drink tax is not coming with the health plan.

JOE KUNKLE, OptionsHawk.com


No comments:

Post a Comment