Is ko good for call option?
7/2/2025 00:01am
**Coca-Cola (KO) is a solid choice for call option strategies** due to several factors:
1. **Stable Dividend Yield**: KO offers a dividend yield of 2.85%, which is attractive for income-seeking investors and can enhance the overall return potential of a call option strategy.
2. **Solid Fundamentals**: KO has a strong market capitalization of $302.7 billion, robust financials, and a history of surpassing Wall Street's bottom-line estimates. This suggests a lower risk profile and potential for steady growth, which are favorable for call option holders.
3. **Technical Indicators Supportive of a Bullish Outlook**: The closing price of KO on July 1, 2025, was $72.085, with resistance at $74.38 and support at $68.78. The 30-Day, 50-Day, and 60-Day moving averages are $71.05, $71.29, and $71.2, respectively. These indicators suggest a bullish trend, which could benefit call option holders looking for price appreciation.
|code|Ticker|Name|Date|Closing Price|market_code|
|---|---|---|---|---|---|
|KO|KO.N|The Coca-Cola|20250701|72.16|169|
|code|Ticker|Name|Date|Support Level|Resistance Level|market_code|
|---|---|---|---|---|---|---|
|KO|KO.N|The Coca-Cola|20250701|68.7800|74.3800|169|
|code|Ticker|Name|Date|Moving Average|market_code|
|---|---|---|---|---|---|
|KO|KO.N|The Coca-Cola|20250630|70.0780|169|
4. **Fibonacci Retracement Levels Indicate Potential Upside**: The 0.618 Fibonacci Retracement is $69.12, which is above the current support level, suggesting potential for the stock to move towards this level or higher, benefiting call option holders.
|code|Ticker|Name|market_code|
|---|---|---|---|
|KO|KO.N|The Coca-Cola|169|
5. **Analyst Optimism and Potential Upside**: Analysts have a "Strong Buy" rating on KO, with an average analyst price target of $80, indicating a potential upside from the current levels, which could be realized through call option premiums.
6. **Strategic Partnerships Enhance Growth Prospects**: Coca-Cola's partnerships, such as with Carnival Cruise Line, can open new market channels and increase brand visibility, potentially driving future revenue growth and positively impacting call option values.
In conclusion, KO's stable dividend yield, strong fundamentals, bullish technical indicators, and growth potential make it a suitable candidate for call option strategies. However, investors should conduct thorough due diligence and consider their risk tolerance and investment horizon before engaging in any trading activities.