Bear Call Spreads on Overbought Stocks
Bear Call Spread67 trades pass on KO
- Return on risk
- 2.0% to 50.4%
- Probability of profit
- 65.4% to 89.8%
Coca Cola Co · Consumer
In the app, stock prices are live and options data is refreshed intraday.
KO last closed at $99.25 with 30-day implied volatility of 19.5%. That is in the upper half of its one-year range (IV rank 53), so premiums are somewhat richer than usual for KO. Measured by IV percentile, IV is higher than 56% of the past year's readings. Options expiring Dec 11 (28 days out) price a one standard deviation move of about $5.30, or 5.3%.
The price is above both its 50-day (+9.2%) and 200-day (+19.2%) moving averages. It is trading within 0.0% of its 52-week high. The 14-day RSI of 73.3 is over 70, a level often described as overbought. The 14-day average true range is $1.74, about 1.7% of the price, a measure of a typical day's range.
Option volume at the close (68.6K contracts) was 1.4x its average, busier than usual. A negative beta of -0.22 means KO has tended to move against the broad market. 6 of our preset screens found trades on KO at the close, led by Bear Call Spreads on Overbought Stocks with 67 trades.
Expected move = price x at-the-money IV x the square root of (days to expiration / 365), a one standard deviation range. The straddle is the at-the-money call plus put, the market's own price for a move. Compare expected moves across stocks.
| Expiration | IV | Expected move | 1 SD range | Straddle |
|---|---|---|---|---|
| Nov 20, 20267 days | 20.3% | ±$2.79 (2.8%) | $96.46 to $102.04 | $2.24 |
| Dec 11, 202628 days | 19.3% | ±$5.30 (5.3%) | $93.95 to $104.55 | $4.24 |
| Jan 15, 202763 days | 20.0% | ±$8.26 (8.3%) | $90.99 to $107.51 | $6.59 |
| Feb 19, 202798 days | 21.0% | ±$10.80 (10.9%) | $88.45 to $110.05 | $8.60 |
Each expiration has its own implied volatility, and short-dated IV reacts more to near-term events, so the nearest expiration can differ a lot from the 30-day figure.
Counts and ranges for KO from our preset scans at the last close. Open a preset in the app to see each trade with its strikes, prices, and risk, refreshed intraday. Income strategies show annualized return; the rest show return on risk.
67 trades pass on KO
44 trades pass on KO
39 trades pass on KO
30 trades pass on KO
5 trades pass on KO
2 trades pass on KO
Market data as of the prior close, for information and education only. Not investment advice. Options involve substantial risk and are not suitable for every investor. See our Terms of Service.