Bullish – KO $49.13 – Consumer Staples
The idea presented is the opinion of the Options Action staff and not a recommendation by OptionsPlay.
On Friday’s Options Action, the crew analyzed the performance of Coca-Cola (KO) stock. KO has underperformed the market for the past 8 years but has come to life and outperformed during the recent selloff. Coupled with a strong dividend, low volatility, and trading new all-time highs, provide a potential breakout to the upside. Expecting KO to trade higher, Michael Khouw suggests buying an Aug 49 Call for $1.50 Debit. As of Friday’s close, these puts were trading at a $1.49 Debit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: KO Options Action Video
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