Traders were looking for lower volatility in Coca-Cola yesterday as its shares bubbled higher.
CCE was up 1.6 percent to close at $31 even. The beverage giant bounced off support at $29.50 two weeks ago and is not far off the 13-year high of $32.55 set on Oct. 18.
A trader sold 2,660 December 31 calls for the bid price of $0.50 against open interest of fewer than 300 contracts, so it is a new position. The afternoon saw action in the December 30 puts with more than 4,800 of those traded, the biggest block of 1,706 going for $0.35, in volume that was also more than open interest.
The action at the two strikes may not be related, but it appears that traders in both cases are looking for less volatility going forward. (See our Education section)
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