KO Options Signal Bullish Bias: 75-Call Block Trade and OI Imbalance Point to Strategic Entry Zones

• Coca-Cola (KO) trades at $70.25, up 1.26% with volume surging past 10.4M shares.
• Options open interest shows 415K calls vs 288K puts—a 0.69 put/call ratio favoring bullish positioning.
• A 6,500-lot block trade in the KO20260220C75 call suggests big money is eyeing a $75 breakout.

Here’s the takeaway: KO’s technicals and options flow align on a near-term bullish bias. The stock is testing 30-day support/resistance clusters while options traders are stacking call open interest above $75. But Costa Coffee’s struggles add a wildcard—let’s break it down.

Bullish OI Clusters and the $75 Call Block Trade

The options market is clearly leaning long. For next Friday’s expirations, the KO20260116C75 call has 20,036 open contracts—the highest of any strike. That’s not just noise: it means 20K traders are betting KO will punch through $75 in seven days. Puts, meanwhile, max out at 15,376 for the $65 strike, showing downside protection is limited to sub-$65 scenarios.

Then there’s that 6,500-lot block trade in the KO20260220C75 call. Someone just spent $195K to control 65,000 shares at the $75 strike. Think about that: this isn’t retail FOMO—it’s institutional capital placing a flag above $75 with a mid-February expiration. If KO cracks $71.63 (Bollinger Upper Band), this trade could turn into a self-fulfilling prophecy.

Costa’s Headwinds vs. KO’s Options Optimism

Coca-Cola’s UK coffee chain is bleeding cash, with operating losses doubling to £100M+ since 2023. But here’s the twist: the stock’s options activity tells a different story. While Costa’s struggles might pressure KO’s valuation multiples, the options market is pricing in resilience. The 30-day moving average (70.24) and 200-day (69.88) are nearly converged—a technical setup that often precedes breakouts.

Investor psychology is key here. KO’s core beverage business remains stable, and the market might be discounting Costa’s woes already. The real risk? If TDR Capital’s buyout talks collapse, shares could gap lower. But for now, the $69.12 intraday low holds as a critical support level.

Actionable Trade Ideas for Today

For options traders:

• Bullish Play: Buy the KO20260116C75 call at $0.30–$0.35. With 7 days to expiry, KO needs to close above $75 for profit. Breakeven is $75.30–$75.35.
• Bearish Hedge: Buy the KO20260116P67.5 put at $0.75–$0.80. This protects against a Costa-driven selloff, with breakeven at $66.70–$66.75.

For stock traders:

• Entry: Consider buying KO near $69.99–$70.11 if price holds above the 30-day support cluster.
• Target: Aim for a 70.61–70.77 resistance breakout, with a stretch target at $71.63 (Bollinger Upper Band).
• Stop: Trail below $69.12 intraday low to protect gains.

Volatility on the Horizon

KO sits at a crossroads. The technical setup favors a bullish breakout, but Costa’s fate could inject volatility. Options positioning suggests the market expects a $75+ move by mid-February—but that’s only if the block traders are right. For now, the 70.24 price level is a microcosm of the broader story: a stock caught between strategic divestitures and enduring brand strength. Watch the $71.63 Bollinger Band level—it could be the line between a rally and a consolidation phase.