Coca-Cola Company (KO) just reported earnings on October 18, 2019, before the market opened. Earnings Per Share (EPS) was reported at $0.56, after analysts had expected $0.56 per share. After earnings, KO opened up +2.3%, and closed for the day up +1.8% at 54.78. Since earnings was reported, the stock has traded in a range from 54.45 to 55.39.
Price Volatility Against Expectations
Ahead of earnings, option traders were expecting a ± 3.0% move for this date, so the earnings move of +1.8% represents an undersized move against the market. KO has only experienced 2 larger-than-expected earnings moves in the last 12 quarters.
Earnings Option Strategies
MarketChameleon's option strategy analysis
shows that selling one day after earnings and buying them back one week after earnings had 67%
winning occurrences, for an average gain of +28.7%
. Additionally, selling at-the-money straddles resulted in 67%
winning occurrences, for an average return of +2.8%