The increase in revenues and earnings is not due to higher sales, but to raises in prices and new cost cutting measures Coca Cola has put into place. KO has beat earnings estimates 5 of the last 5 quarters, and has beat or met revenue estimates 5 of the last 5 quarters. The stock has rallied on the last 4 earnings reports with an average upside move 1.9%

My trade:

Trade: Buy the KO 38.5-39.5 Call Spread for $0.14

Risk: $14 per 1 lot

Reward: $86 per 1 lot

Breakeven: $38.64

Notes: The stock has rallied 4 out the last 4 earnings reports, and this trade has a great risk vs reward setup.