KO Options Signal Bullish Bias: Key Strikes and Trade Setups for Jan 16–23 Expirations

• KO trades at $71.40, showing a 0.22% intraday gain with a bullish engulfing candle.
• Call OI dominance at $72.5 and $75 strikes (OI: 16,700 and 20,221) vs. put OI peaks at $65 and $70 (OI: 16,322 and 11,521).
• Leadership changes and a new digital strategy announced—market reaction mixed but options suggest optimism.

Here’s the takeaway: KO’s options activity and technicals point to upside potential, with key resistance near $72.50 and a bullish RSI (56.9) hinting at momentum. But watch for a breakdown below $70.44 support.

Bullish Calls vs. Cautious Puts: What the Options Say

The options chain tells a story of cautious optimism. Calls at the $72.50 strike (KO20260116C725) and $75 (KO20260116C75) dominate open interest this Friday, suggesting traders are hedging for a rally. Meanwhile, puts at $65 (KO20260116P65) and $70 (KO20260116P70) show bearish positioning, but the put/call ratio (0.716) still favors calls.

This isn’t a one-sided bet. The heavy call OI at $72.50 implies a target for a breakout, but the $70–$70.44 support zone is critical. If KO dips below that, the puts at $65 could gain traction. No major block trades today, so retail and smaller institutional players are driving this setup.

Leadership Changes: Fuel for Bulls or a Distraction?

Coca-Cola’s leadership overhaul—Henrique Braun as CEO, Sedef Sahin as Chief Digital Officer—signals a pivot toward digital transformation. The news hit after a 0.17% premarket dip, but the options market isn’t buying the bearish move.

Think of it this way: The stock’s 52-week range (65.85–77.85) and Bollinger Bands (current price near upper band at $71.86) suggest volatility. The new leadership could either accelerate growth (boosting calls) or create short-term uncertainty (supporting puts). For now, the technicals and options lean toward the former.

Trade Ideas: Calls for the Rally, Puts for the Pullback

• Bullish Play: Buy KO20260116C725 (strike: $72.50, OI: 16,700). Target a close above $72.50 by Friday. If KO holds above $70.81 (intraday low), consider adding KO20260123C74 (strike: $74, OI: 2,613) for a longer-term play.
• Bearish Hedge: A bear put spread with KO20260116P70 and KO20260116P65 could profit if KO dips below $70.44. The $65 strike has high OI but is a stretch unless there’s a sharp selloff.
• Stock Entry: Buy KO near $70.81 (intraday low) with a stop below $70.44. Target $72.50 first, then $73.50 (Bollinger upper band).

Volatility on the Horizon

The next 10 days will test KO’s resolve. A close above $72.50 could trigger a retest of the $73.50 upper band, while a breakdown below $70.44 might force a reevaluation of the bullish case. The options market is pricing in a 70/30 chance of a rally, so position sizing matters.

Bottom line: This is a stock with momentum and a strategic pivot. The leadership changes aren’t magic, but they align with the options’ bullish bias. Trade with the trend, but keep a tight stop below key support.