JJ Kinahan On The Coca-Cola Co Options Ahead Of Earnings

Speaking to Benzinga, TD Ameritrade Chief Strategist JJ Kinahan commented on The Coca-Cola Co KO ahead of its earnings report.

Kinahan noted that the company was at its 10th percentile from a historical volatility perspective and the stock had fallen approximately 6 percent from its last earnings report.

On Monday, the stock traded at approximately 1.25x the normal volume while options traded less than normal, at about 75 percent of the typical volume, according to Kinahan.

The trading pattern was “strange,” in Kinahan’s view, as options trading usually increases ahead of earnings.

Based on implied volatility, the market expected a 2.5 percent move (up or down) for the stock following earnings, Kinahan said.

The Coca-Cola Co reports Q1 earnings Wednesday morning and recently traded at $40.79, up 0.32 percent.

Kevin Riley and Brianna Valleskey contributed to this report.