Brian Stutland's The Coca-Cola Company (KO) Trade

CNBC Options Action's Brian Stutland talked on the show about an options strategy in The Coca-Cola Company (NYSE: KO). He said that The Coca-Cola Company (KO) is at its multi-year high, but he thinks that it has lagged behind the rest of the Dow Jones Index components. He thinks that KO will be able to pass to consumer any rise in the cost of sugar.

Brian Stutland wants to buy a call spread in KO. He wants to buy the May 65 call for $3.00, and sell the May 70 call for $0.40. This trade would cost him $2.60, and his break even would be at $67.60.

The Coca-Cola Company (NYSE: KO) gained 1.33% on Friday, and it closed at $67.22.