Coca-Cola (NYSE: KO), the archrival of PepsiCo (NYSE: PEP), has been acting very bubbly recently in terms of price action. I noticed it had a nice move on Friday. Others have noted the positive price change as well, including this item, which discusses the option activity surrounding Coke and the overall technical position of the stock.
I've been pretty stunned by the rise in price. Usually, the stock is a sleepy thing that doesn't do much. Well, that's probably not entirely true, but if you've held the company in your portfolio as long as I've held it in mine, you know that it seems that way at least. I own Coke for the long-term because I love its dividend-paying characteristics. And I love its brand equity. I'm wondering, though, if Coke might make a good trade at the moment. Or, maybe I should start adding to my position before it takes too sharp a rise.
Looking at the price action, I'd have to say that Coke has a few more bucks higher to go at a minimum. The stock is seeing a slight pause as I write this (the shares are down a small amount, roughly 0.6%, or $0.30).
The one caveat I have to throw in is something I've been saying in just about all my posts lately: you have to watch out for the inevitable correction to come. This rally certainly has room to correct. In fact, I wanted to do some buying today in other stocks, but I've had to summon a ton of discipline not to buy.
Nevertheless, Coke does look interesting at the moment. It will be interesting to see how the price action shapes up in the coming days for this venerable blue-chip company.
Disclosure: I own Coke; positions can change without notice.
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