Coca-Cola (NYSE: KO) shares are falling after Coca Cola Hellenic Bottling (NYSE: CCH) revised its 2008 earnings growth estimate to 5% to 8%, well below the 12% to 15% previously forecast. KO owns a 23% stake in CCH. CCH said rising food and fuel prices have adversely affected consumer spending. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on KO.

After hitting a one-year low of $51.06 last June, the stock hit a one-year high of $65.59 in January. This morning, KO opened at $57.03. So far today the stock has hit a low of $54.01 and a high of $57.10. As of 1:20, KO is trading at $55.02, down $2.12 (-3.7%). The chart for KO looks bearish and steady, while S&P gives the stock its highest 5 STARS (out of 5) strong buy rating.

For a bearish hedged play on this stock, I would consider an August bear-call credit spread above the $60 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 6.4% return in two months as long as KO is below $60 at August expiration. Coke would have to rise by more than 9% before we would start to lose money. Learn more about this type of trade here.

KO hasn't been above $60 since April and has shown resistance around $58 recently. This trade could be risky if the company's earnings (due out in mid-to-late July) are a positive surprise, but even if that happens, this position could be protected by resistance KO might find at its 200 day moving average, which is currently around $59.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in CCH. He does control bullish hedged positions in KO which are struggling. Both this trade above and those positions can expire profitably at the same time.

Coca-Cola Co. (NYSE: KO) stock is falling as investors seem to be rotating money out of defensive stocks like KO and Colgate-Palmolive (NYSE: CL) and into more aggressive stocks. Yesterday's rally has continued this morning despite Fed Chairman Bernanke warning that a recession is possible. This could be a case of investors thinking that by the time anyone acknowledges a recession, the bottom has already happened in the markets. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on KO.

After hitting a one-year low of $48.05 last April, the stock hit a one-year high of $65.59 in January. This morning, KO opened at $61.44. So far today the stock has hit a low of $60.21 and a high of $61.44. As of 12:45, KO is trading at $60.47, down $0.97 (-1.6%). The chart for KO looks neutral and improving, while S&P gives the stock its highest 5 STARS (out of 5) strong buy rating.

Last month Coca-Cola Co. (NYSE: KO) reported better than expected earnings. At the time the company stated it was very pleased with its performance in 2006 with the exception of one area, North America. During their conference call the company admitted they were in for some tough times during 2007, and that they were working on ways to turn things around.

Well, it looks like their first major move in that direction comes in the form of a massive re-organization.

The company announced today that they are going to be breaking up their North American business to create three new beverage divisions. The resulting three business' are going to be sparkling beverages, still beverages and emerging brands.

Coke is hoping that by breaking up into these three different divisions it will be able to put up a better fight against their number one competitor, PepsiCo (NYSE: PEP). Once the split is made, all three of the resulting divisions are going to be responsible for their own product developments. By narrowing each divisions focus this should be a positive step for Coke and one that will allow for better growth in all areas of the business.

Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor's Observer.

George Carlin is going to have a blast with this. In an effort to improve the unhealthy image of soft drinks/soda/pop/tonic, the Coca-Cola Company (NYSE:KO)is going to start referring to its product as a "sparkling beverage." Sales of these sparkling beverages were down 5% last year, as consumers sought healthier alternatives.

To be fair, Pepsi(NYSE:PEP) and Coke are making substantive changes as well. Coke is launching a new version of Diet Coke with vitamins and minerals and Diet Pepsi Max will be enhanced with ginseng and more caffeine. Both companies are also working on "hybrid brands" that will combine the appeal of soda (er...sparkling beverages...) with the healthier aspects of other beverages. And then there's the controversial Enviga, which claims to burn calories. Pepsi will also be changing the design of the Pepsi can 35 times this year, compared to four changes in the past 60 years.

Time will tell whether these marketing changes and product innovations will pay dividends for the soda companies. But I'm extremely skeptical that referring to soda as something other than soda will enhance its reputation. What do you think?