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 has been one of the best-performing stocks of the DOW over the past year. Coupled with a bounce off its $46 support level after December’s selloff provides a strong base for earnings next week. Expecting KO to trade higher on earnings, Michael Khouw suggests buying a May 49 Call for a $1.60 Debit. As of Friday’s close, these calls were trading at a $1.75 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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