The Coca-Cola Company (NYSE:KO) – Activity in The Coca-Cola Company (NYSE:KO) weekly put options on Friday morning indicates some traders are positioning for shares in the world’s largest beverage maker to extend declines during the next five trading sessions. Shares in The Coca-Cola Company (NYSE:KO) are off 1.7% today at $40.15 as of 11:35 a.m. ET. Options players bracing for the price of the underlying to continue to drop next week picked up in and out of the money puts on the stock this morning, purchasing more than 300 in the money calls at the Aug 02 ’13 $40.5 strike for an average premium of $0.42 apiece, and buying roughly 400 of the $40 strike weekly puts at an average premium of $0.20 each. The most actively traded Aug 02 ’13 expiry contracts by volume are the $39.5 puts, with more than 1,100 lots traded versus zero open interest. It looks like most of the $39.5 strike weekly puts were purchased at a premium of $0.15 each. The bearish trade makes money at expiration next week in the event that The Coca-Cola Company (NYSE:KO)’s shares slide 2.0% from the current price of $40.15 to breach the effective breakeven point at $39.35 by expiration. Shares in the soda maker last traded below $39.35 back on June 25th.
Halliburton Company (NYSE:HAL) – Shares in oilfield services provider, Halliburton Company (NYSE:HAL), are in rally mode on Friday, up nearly 4.0% at $46.07 as of 11:45 a.m. ET, on news the company pleaded guilty to destroying evidence in the Deepwater Horizon oil spill in the Gulf of Mexico and prepared a $3.3 billion share buyback. Options traders gearing up for additional gains in Halliburton Company (NYSE:HAL)’s shares in the near term appear to be picking up weekly calls on the stock today. Call buyers looked to the Aug 02 ’13 $46.5 strike options, snapping up roughly 500 contracts for an average premium of $0.47 apiece. The contracts may be profitable at expiration next week should shares in Halliburton Company (NYSE:HAL) rise 2.0% from the current price of $46.07 to top the average breakeven point at $46.97. The most actively traded of the Aug 02 ’13 expiry options are the $47 strike calls, with more than 1,300 lots in play thus far in the session. Time and sales data suggests most of the volume was purchased in the early going for an average premium of $0.29 per contract. Traders long the $47 weekly calls stand ready to profit at expiration should Halliburton Company (NYSE:HAL)’s shares rise 2.8% to $47.29, the highest level for the stock since August of 2011.
Caitlin Duffy
Equity Options Analyst
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