KO Buy the Bad News Long Long

Coca-Cola Company (The)NYSE

Description

⋅ Dec 15, 2023 3:53 AM

KO which as been in an uptrend corrected today due to the news of a 2,000 case recall for

a Salmonella infection scare. This is a gram-negative bacteria which causes bloody diarrhea

and can lead to sepsis shock and death ( for any with a medical background) The sell off of

about 1.5 % was abrupt with high volumes. I see this as a buying opportunity, Moreover on

the rebound reversal, those who sold short will be buying to cover to cash out for the

end of the week. Others like me will look to add to their existing positions. Overall, a short

squeeze could get underway and a momentum pump occur. I see a quick return to the previous

price over a week or less. I will add to my significant call option position in KO at a discount.

The subtle MACD cross under on the zero lag indicator is a tip off here. For those who like to

wait the flip of volatility from selling to buying and then over the moving average line is a

secondary reassurane albeit a little late.

Comment

⋅ Dec 15, 2023 4:36 AM

By the way the "foreign material contamination" is feces ( AKA sh@#) likely from

rats or mice in one of the plants- beware of the coverup but I am buyng the bad

news.

Comments

AwesomeAvani

⋅ Jan 3, 2024 1:58 AM

I will watch and see if KO can power its way above the high volume area with rising relative buying volume. Trim another 25% of the calls when KO gets over 61. CAsh extracted will be dedicated to buying put options when a clear reversal occurs.

AwesomeAvani

⋅ Jan 3, 2024 1:54 AM

KO has drifted down since Dec 14th but got a nice bounce from the lows on December 20-22 at which time I tripled the position in call options which now have jumped considerably as KO
had a strong first day of 2024 while the general market not so much. I will trim 25% of the position and watch for momentum above the December high of the month.

jaredradosevichffl

⋅ Dec 15, 2023 4:47 AM

Its not big enough to move a needle imo... 2k cases is a drop in bucket and I never seen anything that said salmonella. I dont see anything here but I wish I did..... maybe a option play but shares dont really attract me unless im selling covered calls all year!!!!

AwesomeAvani

⋅ Dec 15, 2023 5:00 AM

@jaredradosevichffl, exactly the scare is small change I am in KO big and make money all year- just like Warren Buffet but on nanoscale options is the only wa to go the range is too small for shares unless you are just looking for 3.5 % per year in dividends. Can make 200% on the options on the bounce from the bottom quite easily. As far as the salmonella goes, I am a medical professional ( emergency medicine physician) - I kind of know the news and the subject matter and have the CDC database on my desktop.