As Investors Digest Coca-Cola Q4 Earnings, These Are The Crucial Levels Wall Street Is Betting On

Coca-Cola Co KO on Tuesday reported a 7% year-on-year growth in its net revenue at $10.1 billion, against a consensus estimate of $10.02 billion. The stock, which closed at $59.59 on Tuesday, has remained largely flat over the last year — something that draws the attention of option sellers.

Crucial Levels: Options market data indicates professional traders are not expecting the stock to cross above the $65 mark by Friday. This is because the maximum open interest on the Call side is concentrated at the $65 strike with 28,569 contracts at the time of writing.

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Open interest is the total number of outstanding derivative contracts that have not yet been settled. This indicates that professional traders who usually prefer shorting options and collecting premiums have written a large number of Calls at this level.

Wall Street does not anticipate the stock to fall significantly on the downside by Friday. This is because the highest open interest concentration on the Put side can be seen at the $60 strike with 17,575 contracts at the time of writing.

Outlook: Since the support is closer to the closing price of the stock on Tuesday, it indicates Wall Street has a bullish outlook on the stock in the near term.

However, it is noteworthy that the options market only provides a fair idea about the expectations of the market and any major corporate or macro event could lead to a significant stock movement which causes a shift in open interest levels as well.

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