Coca Cola (KO) Offering Possible 5.93% Return Over the Next 16 Calendar Days

Coca Cola's most recent trend suggests a bearish bias. One trading opportunity on Coca Cola is a Bear Call Spread using a strike $44.00 short call and a strike $49.00 long call offers a potential 5.93% return on risk over the next 16 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $44.00 by expiration. The full premium credit of $0.28 would be kept by the premium seller. The risk of $4.72 would be incurred if the stock rose above the $49.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Coca Cola is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Coca Cola is bearish.

The RSI indicator is at 58.39 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Coca Cola

K-Cup King Keurig Reigns Over Another Coffee Brand
Thu, 04 Dec 2014 17:48:00 GMT

Coca-Cola’s sparkling beverage sales are down but not out
Wed, 03 Dec 2014 21:00:49 GMT

US stocks close higher; Dow, S&P at records
Wed, 03 Dec 2014 21:00:00 GMT

Understanding Coca-Cola’s business segments
Wed, 03 Dec 2014 17:01:02 GMT

Advertising is a key strategy for Coca-Cola’s growth
Wed, 03 Dec 2014 13:01:12 GMT

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