Coca-Cola Enterprises has been drifting lower since mid-April,
and one investor apparently doesn't think that it will start
rallying for at least another month.
optionMONSTER's tracking systems detected the sale of 4,100 July
27.50 calls for an average premium of $0.375 against open interest
of 2,437 contracts. An equal number of June 27.50 calls were
purchased at the same time for $0.05 against open interest of
The trade apparently resulted from an investor rolling a short
position in the calls forward by one month, letting him or her
collect a net credit of $0.325. It may have been implemented by a
shareholder looking to earn income from their position in the stock
or represent an outright naked bet that CCE will remain below
$27.50 through July expiration.
CCE rose 0.26 percent to $26.95 in early afternoon trading and is
down 6 percent since hitting a six-year high of $28.93 on April 14.
The stock gapped higher in late February after agreeing to sell its
North American operations to Coca-Cola.
Under the deal, KO will absorb $8.8 billion of CCE's debt and pay
the bottler $4 billion in cash. CCE will also buy some of KO's
European assets, so the resulting company will be more exposed to
Europe while KO will be more focused on the U.S. market.
Today's short call roll pushed total options volume in CCE to more
than triple the daily average.
(Chart courtesy of tradeMONSTER)
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