Little downside risk seen for Coca-Cola
Put selling topped the action in Coca-Cola as it closed the week in the middle of its range.
A block of 5,000 of the January 42 puts was sold for $0.25 on Friday. The previous open interest stood at 4,040 contracts, which indicates a new position was initiated.
The put seller is making a bet that KO will hold up above $42 through the January expiration. They take on the risk of having to buy shares if they do not. (See our Education section.) He or she is apparently willing to own it below that level, and received the premium as payment for taking that risk.
KO rose 0.05 percent to $42.96. The soft-drink maker peaked $45 exactly one month ago, and held support at $40 last week.
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