While analysts gush all over shares of Coke (KO) on the long side, consider this. The stock has become over-extended, challenging an area where the stock has now failed four times since September 2014. We don’t believe the stock is strong enough to break out here.
One of the best ways to profit from a very likely pullback in the name is by buying to open the Coke (KO) February 2015 43 put up to $1.45 and / or the KO February 42 put up to $1. Both should do very well with patience.
Ian L. Cooper
Forgotten Profits