KO bull call spread, priced right now

Q: What does this KO call spread cost?

$108 per spread at the captured mids — $1.08 per share, which is also the maximum loss. Max profit is $192, reached above $91 at August 28, 2026.

Q: What happens if KO finishes between the strikes?

You keep the intrinsic value of the long call and the short expires worthless — a partial win somewhere between −$108 and $192, crossing into profit at $89.08.

Q: How much is KO expected to move by Aug 28?

The Aug 28 options imply a one-standard-deviation move of $5.08 — about 5.8% of the KO share price — over the 27 days to expiry. That is the market's estimate, not a forecast: roughly a third of the time the actual move is larger.

Q: How wide are KO option strikes?

About $1 apart near the money on the Aug 28 expiry — 1.14% of the share price per rung. That sets how precisely you can place a short strike, and how granular a spread's width can be.

$87.59Coca-Cola Company · chain snapshot captured Aug 1, 2026

Low realized vol, a reliable quarterly dividend, and IV that usually sits in the mid-to-high teens. Premium sellers get paid little per contract here — the trade is about total return on a share position you were going to hold anyway.

A bull call spread buys the $88 call and sells the $91 call on the same Aug 28 expiry. On KO at $87.59 that costs $108 — versus paying full freight for the naked call — and pays a maximum of $192 if KO is above $91 in 27 days. Breakeven is $89.08.

The trade, priced from the chain

27d to August 28, 2026

Leg	Qty	Price	Δ	IV	Cash
BuyAug 28 $88 call	1	$2.00	0.49	22%	−$200
SellAug 28 $91 call	1	$0.92	0.27	21%	+$92

Net debit

$108

Max profit

$192

Max loss

$108

Chance of profit

39%

Breakeven

$89.08

+1.7%

$85.04 – $93.55 price rangespot $87.59breakeven $89.08P/L at expiration

Open this bull call spread in the builderLoads these exact legs and re-quotes them live. No account needed.

Every leg above is priced at the chain’s own quote — the identical number the builder will show you when you click through (last traded price), captured August 1, 2026 with a 15-minute delay. Only strikes whose print survives an implied-volatility check (within 20% of its own IV) and a no-arbitrage check across the ladder are priced here. Full methodology. Greeks, breakevens, max profit/loss and probability of profit are computed by OptionTracker’s engine at r = 4.2%. Educational analysis, not investment advice.

How a bull call spread works

You are financing the call you want with the call you're willing to give up. The short $91 strike caps your upside; in exchange it cuts the debit, which cuts the breakeven from where a naked call would sit down to $89.08.

The payoff is a ramp between the strikes. Below $88 you lose the full $108. Between the strikes P/L climbs linearly. Above $91 it is flat at $192, no matter how far KO runs.

Risk/reward is 1.8:1 — risk $108 to make $192 — with the engine's probability of finishing profitable at 39%. That trade-off is the entire argument for using a spread instead of a call: you are paid to give up the tail you probably weren't going to catch anyway.

Vega roughly cancels between the two legs, so a vol crush after quarterly earnings and hurts far less than it would on an outright call. That is often the real reason to spread.

When it makes sense

You have a target, not just a direction: you think KO reaches $91 but not much past it.
IV is high enough that an outright call feels expensive — the short leg recycles some of that premium.
Defined risk matters: the most this can lose is the $108 debit, known the moment you enter.
The move you need is inside what the underlying has actually done over comparable windows, not merely inside what feels possible.

Where the risk actually is

Max loss is the full $108 debit, and it happens on any close below $88 — which includes "KO went nowhere". Time decay works against you from day one; the position needs the move AND needs it before August 28, 2026.

The short leg carries assignment risk if it goes deep ITM near expiry. Being assigned early leaves you short stock against a long call — recoverable, but not on a Friday afternoon.

The ceiling on a spread is a real cost, not a theoretical one. It is paid exactly in the scenarios where your thesis worked best, which is when it hurts most to notice.

KO specifics: ladder, surface, and the implied move

There is very little to express. A stock that realizes in the low teens does not travel far enough in a month for a debit structure to clear its own breakeven often enough to matter, and the strike ladder is coarse relative to the moves. If you have a Coca-Cola view, the shares are the instrument.

KO's Aug 28 strikes are $1 apart near the money (1.14% of spot). Workable granularity — though every rung you move a strike is a material change to the payoff, not a rounding. 5.5k contracts of open interest on Aug 28 is thin, and a structure that needs four separate fills will pay for it. 21 strikes on that expiry — 40% of the board — carry prints that agree with their own implied volatility and hold up across the ladder, and those are the strikes priced here. Reasonable at the near strikes; the wings are quiet enough that a four-leg structure is not worth the slippage.

The surface is close to flat: only 0.5% between the 25-delta put and the 25-delta call. With so little skew, the wings on either side cost about the same in vol terms — unusual, and worth exploiting if your view is one-sided. The term structure is flat inside 1.5% between the two captured expiries, so there is no calendar edge to harvest and no event visibly priced into one month over the other.

At 21% ATM implied vol, the Aug 28 options are pricing a one-standard-deviation move of $5.08 over 27 days — roughly −5.8% to +5.8%, or $82.51 to $92.67. Compare that with where the short strike of the structure above sits. A target inside the implied move is one the market already thinks is likely; a target outside it is the one you are actually being paid for.

The mistake this name punishes hardest: Chasing yield by moving the short call closer to the money on a name whose whole appeal is that you keep the shares.

Picking the strike on KO

Two choices: where to buy, and how far to sell. On KO at $87.59, the long strike's delta sets how stock-like the position behaves and the short strike sets your ceiling.

Band	What it means	When it fits
Long ~0.60 – 0.70 Δ	ITM long leg, mostly intrinsic	Higher cost, higher probability, less time decay. The conservative construction.On KO: the Aug 28 $87 call at $2.21, 34% annualized
Long ~0.45 – 0.55 Δ	ATM, the default	Balanced. What the builder loads by default and where most spreads are traded.On KO: the Aug 28 $88 call at $2.00, 31% annualized
Long < 0.35 Δ	OTM, lottery construction	Cheap, low probability, big multiple. Requires the move to actually happen.On KO: the Aug 28 $90 call at $1.26, 19% annualized
Short leg placement	Wider = more upside, more debit	Put the short strike at your actual price target, not at a round number.

The Aug 28 call chain below shows real deltas and mids. A quick sanity test: if the debit is more than 60% of the spread width, the market is telling you the move is already priced.

From the far strike to the near one, the premium below moves by a factor of 11.0. Where you sit on that curve is the trade. Open interest concentrates at $90 on this expiry, which is usually where the fills are cleanest.

KO 2026-08-28 calls around the money: strike, distance from spot, mid price, delta, implied volatility and open interest.
Strike	vs spot	Mid	Δ	IV	% of spot	Ann.	OI
$87	−0.7%	$2.21	0.56	22%	2.5%	34%	105
$88	+0.5%	$2.00	0.49	22%	2.3%	31%	121
$89	+1.6%	$1.55	0.41	22%	1.8%	24%	238
$90	+2.8%	$1.26	0.34	21%	1.4%	19%	418
$91used	+3.9%	$0.92	0.27	21%	1.1%	14%	100
$92	+5.0%	$0.69	0.21	21%	0.8%	11%	75
$93	+6.2%	$0.45	0.17	22%	0.5%	7%	69
$95	+8.5%	$0.22	0.10	22%	0.3%	3%	22
$96	+9.6%	$0.20	0.07	22%	0.2%	3%	12

KO calls expiring August 28, 2026· 15-min delayed capture · “Ann.” annualizes the mid as a percentage of spot over 27 days.

Managing the position

Close both legs together. Legging out of a spread that's working is how a defined-risk trade turns into an open-ended one.
If KO stalls with two weeks left, the spread rarely recovers — theta on a debit spread past 21 DTE is working against the leg you own.
Never leg out of a defined-risk structure. Closing the short leg of a spread that is working converts a known maximum loss into an open-ended one, usually at the worst possible moment.
Size for a total loss. Debit structures expire worthless routinely and the position size should assume it, because the payoff table already does.

Common mistakes

Spreading a thesis that needs the tail

If your view on KO is a re-rating rather than a drift to $91, capping upside at $192 defeats the point. Spread when you have a target; buy the call when you have a tail.

Buying spreads into a known event

quarterly earnings and inflates both legs. The structure survives the crush better than a naked call, but you still paid event-priced premium for the leg you own.

Confusing cheap with likely

A structure that costs a third of what the outright costs needs the same move to pay. Reducing the debit moves the breakeven; it does not move the stock.

KO bull call spread FAQ

What does this KO call spread cost?