Coca-Cola Stock Nabs Fresh 2-Year High; Bulls Respond

Coca-Cola reported better-than-expected second-quarter results

Blue chip Coca-Cola Co (NYSE:KO) reported better-than-expected earnings and revenue for the second quarter, and lifted both its full-year sales and profit outlook thanks to strong demand.

KO is 1.6% higher to trade at $65.78 at last check, and earlier scored a fresh two-year high of $66.04. The shares are consolidating above the $64.50 level, which previously acted as resistance, and also conquered 20-day moving average earlier this month. In the last nine months, the security added 18.2%.

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity’s 10-day put/call volume ratio ranks higher than 95% of readings from the past year, meaning puts have been picked up at a much faster-than-usual rate. An unwinding of this pessimism could also create additional tailwinds for Coca-Cola stock.

Drilling down to today’s options activity, 11,000 calls and 7,489 puts have already crossed the tape, which is four times the volume that is typically seen at this point. The most active contract is currently weekly 7/26 66-strike call, followed by the 67-strike call in that same series.

 

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