A large investor apparently believes that upside potential will be limited for Coca-Cola in coming months.
optionMONSTER's market scanners detected the sale of 8,300 July 48 calls in one print for $0.17 yesterday. Volume was well above the strike's open interest of 2,713 contracts, showing that this is a new position.
Short calls generate income and lock in the price where a stock must be sold. The trade is usually done in conjunction with long shares in a covered-call strategy, reflecting a belief that gains will be limited through expiration. (See our Education section)
KO fell 0.63 percent to $45.46 yesterday but is up 6 percent in the last three months. The beverage icon announced bearish quarterly results on April 20 and is expected to release its next earnings numbers before the market opens on on July 19, two sessions after yesterday's short calls expire.
Overall option volume was about average in KO yesterday.
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