I see options on the chain slightly OTM at $65 $66, and $67 strikes dated for expiration between the end of this month and middle of December with relatively low bid/ask spreads. I've been looking at entering a position on Monday depending on how the day open goes planning to take advantage of this. Honestly, I see $KO making a huge rebound with a one month time period back to $65.
**My plan, buy x50 contracts of:**
- $64 11/29 (current: 0.12),
- $65 12/6 (current: 0.09),
- $66 12/13 (current: 0.07)
**and sell x50 contracts of:**
-$67.5 12/20 (to reduce cost basis, current: 0.07)
Besides the stock just not going up at least 4.99% before last expiration, I don't see any issue with this trade given the RSI(14) indicating it is oversold, it is nearly touching the bottom MA(50), and below it's shorter span moving averages. It surely must go back up, right?
What do you guys think?