KO Analysis

The Coca-Cola Co. (KO)

KO publishes earnings on Thursday before the opening bell.

I shall use the MAR series of options, which trades for the last time 37 days hence, on March 17.

Implied volatility stands at 16%, which is 1.4 times the VIX, a measure of the volatility of the S&P 500 index.

KO’s IV stands in the 34th percentile of its annual range and the 44th percentile of its most recent broad movement.

The price used for analysis was $41.90.

At this point I can go to a decision without further analysis.


Decision for My Account

KO’s implied volatility fell during the day. By the time I reached the period in the market day when I place my trades, the symbol no longer qualified for trading because IV’s level relative to both the annual range and the range of the most recent broad movement was below the 50th percentile.

I am passing on the trade.

By Tim Bovee, Portland, Oregon, Feb. 8, 2017

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