COKE Plummets 4.75% Amid Stake Trimming and Volatile Options Activity – What’s Next?

Summary
• Coca-Cola Consolidated (COKE) slumps to $152.99, down 4.75% from its $160.63 open
• Marathon Asset Management trims stake by 26.4%, now holding 63,710 shares worth $7.46M
• Options chain shows heightened volatility, with 20 contracts trading at 30–50% implied volatility

Coca-Cola Consolidated’s stock has plunged nearly 5% in intraday trading, marking its worst performance since late 2023. The selloff follows a major institutional stake reduction by Marathon Asset Management and a surge in options activity. With the stock trading below its 50-day moving average and key technical indicators flashing bearish signals, investors are scrambling to decipher whether this is a short-term correction or a deeper shift in sentiment.

Institutional Stake Trimming Sparks Liquidity Crisis
The sharp decline in COKE shares is directly tied to Marathon Asset Management’s 26.4% reduction in its stake during Q3, now holding 63,710 shares worth $7.46 million. This move by a top institutional investor has triggered a liquidity cascade, with the stock’s turnover rate hitting 0.53%—far below its 30-day average. The sell-off intensified as options market participants priced in heightened volatility, with the 2026-01-16 145-strike put option (COKE20260116P145) surging in implied volatility to 30.72%. The lack of immediate buyers at key support levels (160.01–163.92) further exacerbated the downward spiral.

Bearish Options Play and ETF Positioning in a Volatile Environment
• 52W High: $169.49 (29.5% above current price) • 52W Low: $105.21 (35.7% below) • 200D MA: $134.91 (22.3% above) • RSI: 34.36 (oversold) • MACD: -1.39 (bearish divergence)
• Bollinger Bands: 160.01–167.82 (current price at 152.99, below lower band) • Turnover: 402,756 (0.53% of float) • Dynamic PE: 22.63 (neutral valuation)

Technical indicators suggest a short-term bearish bias, with the stock trading below its 200-day moving average and RSI in oversold territory. The 150.29 intraday low aligns with the 200-day Bollinger Band support (160.01–167.82), but a break below this level could trigger further institutional selling. For options traders, the COKE20260116P145 put option stands out: it offers 126.69% leverage with a delta of -0.196 and implied volatility at 30.72%. A 5% downside to $145.34 would yield a 28.82% return. The COKE20260220C150 call option (delta 0.617, IV 26.15%) provides asymmetric upside if the stock rebounds above $150. ETFs like XLF (Financial Select Sector SPDR) could offer sector exposure if the selloff spreads to broader consumer staples.

Backtest Coca-Cola Consolidated Stock Performance
The performance of Coca-Cola (KO) after a -5% intraday plunge in 2022 can be summarized as follows:1. Market Reaction to the Plunge: Following the -5% drop in intraday trading in 2022, Coca-Cola's stock faced a brief period of volatility. However, the company's strong fundamentals and strategic moves helped it recover and even surpass previous highs.2. Strategic Moves and Growth: Coca-Cola has been actively managing its brand portfolio, cutting down to 200 brands from 400, and doubling down on global bets to provide "beverages for life" across different dayparts and categories. This strategic consolidation has likely contributed to its performance post-plunge.3. Financial Health and Dividend: The company's financial health remains robust, with a market cap of approximately $275.5 billion as of December 23, 2022. Coca-Cola's ability to pay off current liabilities has increased, and its debt-to-equity ratio has dropped, indicating improved leverage. Additionally, the company has increased its regular quarterly cash dividend from $0.25 to $0.50 per share and declared a special cash dividend of $3.00 per share, which may have bolstered investor confidence.4. Comparison with Peers: When compared to other large corporations like Amazon and Apple, Coca-Cola's enterprise value (EV) has shown an incremental increase rather than a skyrocketing rise. This suggests that while the company may have faced a temporary setback, it has continued to perform well relative to its peers.5. Long-Term Outlook: The overall outlook for Coca-Cola remains positive, with the company expected to continue participating actively in the alcoholic beverage space. The interest in alcoholic RTDs and the use of digital B2B technologies are likely to smooth the execution of new ventures, which could further enhance its performance in the future.In conclusion, while Coca-Cola experienced a -5% intraday plunge in 2022, the company's strategic initiatives, financial strength, and commitment to shareholder returns have likely contributed to its recovery and continued growth. The stock has outperformed the broad market in 2022, and its elevated valuation multiples are not seen as a concern

COKE at Pivotal Crossroads: Watch 150.29 Support and Institutional Flow
The immediate outlook for COKE hinges on whether the 150.29 intraday low holds as a support level. A break below this would likely trigger a retest of the 52-week low at $105.21, while a rebound above $160.01 could reignite institutional buying. Investors should monitor Marathon Asset Management’s next filing for clues on further stake adjustments. Meanwhile, the sector leader KO (The Coca-Cola Company) has risen 0.55% today, suggesting broader beverage sector resilience. For aggressive traders, the COKE20260116P145 put offers high leverage if the bearish trend continues, while the COKE20260220C150 call could capitalize on a short-term bounce. Position sizing should remain conservative given the stock’s elevated volatility.