J. P. Morgan Suggests Overwriting Coca-Cola Co.

J. P. Morgan is out with a research note this morning, where it suggests that traders sell calls against their long position in Coca-Cola Co.

. J.P. Morgan Equity Analyst John Faucher published a report on Coca-Cola Co. on 03 October 2011, noting “We are downgrading The Coca-Cola Company from Overweight to Neutral as we feel that negative revisions, based on fx, interest income, and a tough macro environment, are not priced in.” JPM options analysts believe that investors who agree with the above statement should consider overwriting their long potion in KO to enhance yield. The analysts suggest selling the November 2011 $67.50 call for $1.57. The Coca-Cola Company is a non-alcoholic beverage company. The company owns or licenses and markets more than 500 non-alcoholic beverage brands, primarily sparkling beverages but also a variety of still beverages such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks.