Well my Aug. 80 puts are looking better. When analyst where projecting .36 eps a share I knew it was on the high side. Coke then must have started steering the analyst down. Then consensus move down to the .34 estimate. I projected .34 a month ago. So earnings were down about 13% from a year ago. If you take the bottle gain out they were up only 9.7%. Management said they consider the sell of bottling companies part of earnings. So the accurate way to report earnings would be .34 eps down 13% from a year ago. Looks like a stock that sould have a 30 p/e (max.) not a 48 p/e. My prediction now is that some analyst will down grade ko soon.
I think selling calls is probably better than buying puts. I feel like the stock is still very capable of going higher if management decides to split the stock. With the crazy new investors that think a stock split is so great and p/e's don't matter the stock could go alot higher. With these young, small, Warren Buffett lovers that worry about a dollar charged in the D.R.I.P. account and buying all the ko stock they can afford , who knows how high it could go. They might stop drinking coke so they can afford the dollar charged and buy a little more stock. If the market corrects a little I see ko in the low 60's. Good luck if you sell coverd calls but I will win either way. Remember its a game and the market has momentum now but momentum is subject to change at any time. As far as ko the momentum looks like its going the right way for shorts now.
Seems like everyone is intent on rationalizing a price of an irrational commodity. Coke is SUGAR WATER! Throw all rationality out! This company is selling something your kids would sell outside of your house for 5 cents a glass. KO is the dream company and a marketing marvel. For get p/e's. As long as the company keeps getting more and more people to drink this stuff (and the numbers show that they ARE), for whatever reason, over the long term KO is agreat investment. I've owned for only 10 years and will continue to buy for many more.
Their forcus on shareholder value will drive the stock. As a recent post said, the supply is getting shorter as they repurchase their shares (if they have to raise the price).
Don't try to apply textbook rules on a creative thinker.
Many years ago, a very wealthy man told me if he could sell all of his stock and buy one company, it would be COKE. That same year, another wealthy man said the exact same thing about COKE. At that time,I started a DRIP with COKE and continue to add to my position every month. Now I am a wealthy man, and will continue to get richer. Who do you want to listen to? The poor naysayers,or the wealthy COKE accumulators.
You have hit the proverbial nail squarely on the head. Coke is a big, well run company that makes lots of money. What widow or orphan wouldn't have Coke in his/her portfolio. Though institutions hold much Coke stock look how much has to be tied up in small portfolios. A 100 shares here 200 there. Add the company's aggressive buyback policy and the liquidity factor comes into play. Even with the millions of shares actively traded. This company is and will continue to be a stock market as well as economic leader. Hold your shares, buy on dips and leave a fortune to your grandchildren. After all they aided in the generation of the profits you will garner from continuing to own Coke stock.