Coca Cola Receives Bullish Reaction

Coca Cola (NYSE: KO) announced a major green push this morning, stating the its innovative PlantBottle technology will be sent to market by the end of 2010 in such markets as Denmark and the Western U.S. This not only provides good PR for the major conglomerate, but also helps them to reduce their consumption of petroleum, a major input factor, which can lead to better margin on a product whose margin has either been stagnant or under pressure in recent years.

Coca Cola options are picking up on that cost savings and Call buyers are testing the water. They are giving their trades time to work though. The Jan 2010 55 Calls traded over 3,500 contracts and the Feb 2010 57.50s over 3,700 in the morning trade. Some of the Dec contracts were hedged by selling the 60 calls; the stock has been on a tear since its March low near 40 and 60 could prove resistance.