One of the most popular brands worldwide and definitely the most famous carbonated soft drink, Coca Cola can also be a great investment for binary options traders. Their stock no longer appears to be immobile and the recent results are contradictory enough to make options trading very profitable. At a first glance, it might appear like KO stock is going to enter a lengthy downswing following the news that the company missed estimated sales volumes. On the other hand, there are a couple of arguments in favor of this stock and all of them are of great interest for savvy traders.
How will sales volume news impact stock price
The analysts' estimates and the actual sales for 2012 are separated by roughly 2%, and the news created panic among those who hold Coca-Cola stock. The leading beverage company worldwide saw its stock enter a steep decline and the numbers are still looking a bit worrisome. It comes as no surprise that financial performance is the determining factor for binary options traders who want to speculate the sudden dips or surges of stock, and the results reported by the company are contradictory to say the least.
On short term, the fact that the sales volume growth was only 4% instead of 6% as predicted one year ago led investors to the conclusion that the stock is volatile. As far as binary options traders are concerned this is not the problem but an opportunity, because they can extract profit regardless of what direction the stock is moving in. Speaking of which, those who are chasing quick gains and are willing to take chances to obtain them, should open put options right away but make sure that they have an early expiration date.
Positive outlooks for Coca-Cola
The sales in emerging countries are once again expected to drive Coca-Cola stock price upwards, despite the fact that the economic conditions in Europe are far from ideal. As the old continent's GDP shrank by almost half percent, the beverage company suffered unexpected losses, but even so the reported financial performance for 2012 was in accordance with the estimates. One of the strong suits of KO is that the product they sell is equally appealing to people from all over the world, and has an impressive market outreach that is only expected to expand.
Contrary to popular belief, more than half of the revenue earned by Coca-Cola comes from beyond USA borders and emerging countries are the most lucrative markets. As consumption increases in these areas, popular soft drinks such as Coke are among the products sought after by an increasingly broader customer base. For binary options traders, this is an excellent opportunity to take advantage of the slightly oversold stock and bet on KO to return to its former glory. If you play the long game, buy call options with a longer expiry date because Coca-Cola has been around for quite a while and it is here to stay.