COKE Straddle Strategy
COKE (Coca-Cola Consolidated, Inc.), in the Consumer Defensive sector, (Beverages - Non-Alcoholic industry), listed on NASDAQ.
Coca-Cola Consolidated, Inc., together with its subsidiaries, manufactures, markets, and distributes nonalcoholic beverages primarily products of The Coca-Cola Company in the United States. The company offers sparkling beverages, such as carbonated beverages; and still beverages, including energy products, as well as noncarbonated beverages comprising bottled water, ready to drink coffee and tea, enhanced water, juices, and sports drinks. It also sells its products to other Coca-Cola bottlers; and post-mix products that are dispensed through equipment, which mixes the fountain syrup with carbonated or still water enabling fountain retailers to sell finished products to consumers in cups or glasses. In addition, the company distributes products for various other beverage brands that include Dr Pepper and Monster Energy. It sells and distributes its products directly to grocery stores, mass merchandise stores, club stores, convenience stores, and drug stores; and restaurants, schools, amusement parks, and recreational facilities, as well as through vending machine outlets. The company was formerly known as Coca-Cola Bottling Co.
COKE (Coca-Cola Consolidated, Inc.) trades in the Consumer Defensive sector, specifically Beverages - Non-Alcoholic, with a market capitalization of approximately $12.96B, a trailing P/E of 16.12, a beta of 0.60 versus the broader market, a 52-week range of 105.21-219.65, average daily share volume of 551K, a public-listing history dating back to 1990, approximately 15K full-time employees. These structural characteristics shape how COKE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.60 indicates COKE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. COKE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on COKE?
A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration.
Current COKE snapshot
As of May 15, 2026, spot at $168.31, ATM IV 37.00%, IV rank 33.37%, expected move 10.61%. The straddle on COKE below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 34-day expiry.
Why this straddle structure on COKE specifically: COKE IV at 37.00% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 10.61% (roughly $17.85 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated COKE expiries trade a higher absolute premium for lower per-day decay. Position sizing on COKE should anchor to the underlying notional of $168.31 per share and to the trader's directional view on COKE stock.
COKE straddle setup
The COKE straddle below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With COKE near $168.31, the first option leg uses a $170.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed COKE chain at a 34-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 COKE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $170.00 | $6.95 |
| Buy 1 | Put | $170.00 | $8.65 |
COKE straddle risk and reward
- Net Premium / Debit
- -$1,560.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$1,476.08
- Breakeven(s)
- $154.40, $185.60
- Risk / Reward Ratio
- Unbounded
Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit.
COKE straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on COKE. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | +$15,439.00 |
| $37.22 | -77.9% | +$11,717.68 |
| $74.44 | -55.8% | +$7,996.37 |
| $111.65 | -33.7% | +$4,275.05 |
| $148.86 | -11.6% | +$553.73 |
| $186.08 | +10.6% | +$47.58 |
| $223.29 | +32.7% | +$3,768.90 |
| $260.50 | +54.8% | +$7,490.22 |
| $297.72 | +76.9% | +$11,211.53 |
| $334.93 | +99.0% | +$14,932.85 |
When traders use straddle on COKE
Straddles on COKE are pure-volatility plays that profit from large moves in either direction; traders typically buy COKE straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
COKE thesis for this straddle
The market-implied 1-standard-deviation range for COKE extends from approximately $150.46 on the downside to $186.16 on the upside. A COKE long straddle is a pure-volatility play: it profits when the underlying moves far enough from the strike in either direction to overcome the combined call plus put debit, regardless of direction. Current COKE IV rank near 33.37% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on COKE should anchor more to the directional view and the expected-move geometry. As a Consumer Defensive name, COKE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to COKE-specific events.
COKE straddle positions are structurally neutral / high-volatility (long premium); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. COKE positions also carry Consumer Defensive sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move COKE alongside the broader basket even when COKE-specific fundamentals are unchanged. Always rebuild the position from current COKE chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on COKE?
- A straddle on COKE is the straddle strategy applied to COKE (stock). The strategy is structurally neutral / high-volatility (long premium): A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration. With COKE stock trading near $168.31, the strikes shown on this page are snapped to the nearest listed COKE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are COKE straddle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the COKE straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 37.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,476.08 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a COKE straddle?
- The breakeven for the COKE straddle priced on this page is roughly $154.40 and $185.60 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current COKE market-implied 1-standard-deviation expected move is approximately 10.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on COKE?
- Straddles on COKE are pure-volatility plays that profit from large moves in either direction; traders typically buy COKE straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
- How does current COKE implied volatility affect this straddle?
- COKE ATM IV is at 37.00% with IV rank near 33.37%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.