Coca-Cola Enterprises draws bullish bet


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Coca-Cola Enterprises has pulled back to key support, and one investor is looking for a rebound.

optionMONSTER's Heat Seeker tracking program detected the purchase of 6,875 January 29 calls for $1.75 and the sale of an equal number of January 25 puts for $1.75. Volume was more than 17 times open interest at both strikes.

The position cost nothing to establish and is similar to owning shares in the soft-drinks bottler, making money up the upside and losing value to the downside. Unlike owning shares, however, the position will track the stock price less closely as time passes and expire worthless if it remains between $25 and $29.

CCE is down 1.72 percent to $26.93 as it tries to bounce around $27. The current level is potentially important because it was resistance late last year and is the location of the stock's 200-day moving average. That could be leading some chart watchers to believe that there is little risk to the downside.

The company's last earning report on April 26 beat expectations on the top and bottom lines, aided by price increases.

Overall option volume is 11 times greater than average so far today.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.

This article appears in: Investing , Options

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