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A Coca-Cola Call Option

After a strong push with their World Cup marketing scheme and essentially doubling their growth in Africa and Asia, Coke looks poised for a nice run. The fundamentals and dividend yield are both strong and Brian has a simple trade to gain more leverage to the upside. His play is the Sept.55 call, you pay $1.80 so your break even point is $56.80, above that you start to participate as if you are long stock. Below 55 you have no more risk other than the $1.80 you paid for the trade. Brian feels Coke is at an inflection point where it may move significantly higher, possibly 10% or more in the next year.

Coca-Cola Trade

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