Volatility play targets Coca-Cola

Shares of Coca-Cola are jumping today, while an odd combination trade is designed to profit from volatility.

KO is up 3.51 percent to $40.09 following better-than-expected quarterly results this morning. This takes the stock back up to where it was at the start of 2014. It had fallen as low as $37 after the last earnings in February.

The trade involved 2,402 each of the June 38 calls and June 42 puts that changed hands for $2.16 and $2.39 respectively, according to optionMONSTER systems. Given the trade data and price action, this is a new position.

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