Q2 STOCKS TO BUY

Call Traders Target Coca-Cola Stock After Earnings

The company also lifted its full-year guidance

Deputy Editor
Oct 25, 2022 at 11:00 AM
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Coca-Cola Co (NYSE:KO) reported better-than-expected third-quarter results before the open this morning, with profits of 69 cents per share on revenue of $11.05 billion beating estimates of 64 cents per share on $10.52 billion. The soda giant also raised its full-year profit and revenue forecasts. KO is up 1% to trade at $58.14 at last glance.  

On the charts, Coca-Cola stock is rallying off this month's lows at the $54 level. The 320-day moving average, a trendline that acted as long-term support until the stock dropped below it in late September, still looms overhead, however. Year-to-date, the equity is off just 1.8%. 

Calls have been much more popular than usual leading up to the event, as per KO's 10-day call/put volume ratio of 3.64 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 92% of annual readings.

The options pits are keeping with this optimistic sentiment today. So far, 59,000 calls have crossed the tape -- five times the intraday average -- in comparison to 11,000 puts. The weekly 10/28 60-strike call is the most popular by far, with new positions being opened there. 

 

 
 

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