Welcome back to our weekly series, Schaeffer's Cannabis Stock News Update, where we recap what happened in the world of marijuana stocks this past week and look ahead to how the cannabis industry will develop in the new year.

Investor interest in the cannabis industry continues to grow, and the leading players continue to break through legal barrier after legal barrier. More than 40 U.S. states have legalized recreational and/or medical marijuana. As such, more and more companies are starting to see the opportunity in cannabis distribution, suggesting there are many more marijuana initial public offerings (IPOs) on the horizon for the marijuana stock industry.

In New Jersey this week, lawmakers passed a bill regarding the recreational marijuana marketplace. The legalization of recreational cannabis goes into effect on Jan. 1, with recreational cannabis is expected to be available in the state within approximately six months. The latest bill primarily dealt with how recreational marijuana would be taxed and how that money would be used. According to the New Jersey Senate President, Steve Sweeney, "This is a historic reform that will have a real-life impact on social justice, law enforcement and the state’s economy. It will launch a new cannabis industry with the potential to create jobs and economic activity at a time when it is desperately needed. We will now be able to move forward to correct social and legal injustices that have had a discriminatory impact on communities of color at the same time that marijuana is regulated and made legal for adults.”

Here is a quick roundup of a major cannabis stock news last week (Dec. 14 through Dec. 18):

Aphria Inc. (NASDAQ:APHA), a leading global cannabis company inspiring and empowering the worldwide community to live their very best life, and Tilray, Inc. (NASDAQ:TLRY), a global pioneer in cannabis research, cultivation, production, and distribution, announced on Dec. 16 that they have entered into a definitive agreement to combine their businesses and create the world’s largest global cannabis company based on pro forma revenue. We took a look at the options activity surrounding both equities and analyzed how each stock has been performing on the charts of late.

Aurora Cannabis Inc. (NYSE:ACB), the Canadian company defining the future of cannabinoids worldwide, provided a business update on Dec. 16. Credit facility terms improved including maturity extension to December of 2022. $450 million of cash on balance sheet & improving cash flow positions the company to see sustainable, long-term revenue growth. As part of this business update, Aurora also announced the closure of its Aurora Sun facility, resulting in the laying off of approximately 200 employees.

FSD Pharma Inc. (NASDAQ:HUGE), announced on Dec. 15 the dosing of the first patient in its Phase 2a clinical trial of FSD201 for the treatment of hospitalized patients with COVID-19.

HEXO Corp. (NYSE:HEXO), reported its quarterly earnings results for its fiscal first quarter of 2021 on Dec. 14. Gross revenue of $41.3M CAD, the highest in the company’s history, increased 14% over last quarter, and increased 114% year-over-year. Net revenue was reportedly $29.5M CAD for the first quarter, up 9% over last quarter and represents a 103% year-over-year.

Innovative Industrial Properties, Inc. (NYSE:IIPR) is focused on the regulated U.S. cannabis industry, and announced on Dec. 18 that it closed on the acquisitions of property in Georgetown, MA and a property in Olympia, Washington, which collectively comprise approximately 181,000 square feet of industrial space.

Organigram Holdings Inc. (NASDAQ:OGI), a leading licensed producer of cannabis, announced on Dec. 16 that it was launching its Trailblazer Spark, Flicker, and Glow 510-thread Torch vape cartridges in a new 1g format.

Sundial Growers Inc. (NASDAQ:SNDL), announced on Dec. 15  that the company has prepaid $50M CAD of its outstanding principal under its senior secured non-revolving term credit facility to further improve its balance sheet.

22nd Century Group, Inc. (NYSE:XXII), a leading plant-based, hemp/cannabis research, announced on Dec. 17 that the company was granted a new U.S. patent related to the control of cannabinoid and terpene production in plants.

Village Farms International, Inc. (NASDAQ:VFF), announced on Dec. 17 the continued expansion of its Cannabis 2.0 offerings, including its first cannabis-infused gummy products based on the propriety technology of White Rabbit OG.

Zynerba Pharmaceuticals, Inc. (NASDAQ:ZYNE), the leader in innovative pharmaceutically-produced transdermal cannabinoid therapies for rare and near-rare neuropsychiatric disorders, provided an update on Dec. 17 on the company's meeting with the Food and Drug Administration (FDA) regarding its Fragile X syndrome (FXS) program. Zynerba plans to conduct a double-blind, placebo-controlled pivotal trial in patients with FXS who have a highly methylated FMR1 gene to confirm the positive results observed in this population of responders in the CONNECT-FX trial.

Constellation Brands, Inc. (NYSE:STZ) is the producer and marketer of many well-known beer, spirits and wine brands. The company’s portfolio also owns 38.6% of Canopy Growth (CGC), in an effort to carve out its own slice of the cannabis industry.

STZ scored an annual high of $218.90 just yesterday, and is now up 15% in 2020. The shares have nearly doubled off their March 23 five-year lows of $104.28, and this most recent stretch of higher highs has support in place at their 30-day moving average. A word of warning though; STZ's 14-day Relative Strength Index (RSI) of 68 sits on the cusp of "overbought" territory -- which means a short-term breather may be imminent.

Whatever the direction, now could be an opportune time to take advantage of the security's next move with options. The stock's Schaeffer's Volatility Index (SVI) of 33% sits in the particularly low 17th percentile of its annual range. This means CSCO currently sports attractively premiums.

Constellation Brands stock has a forward dividend of $3.00 and a forward dividend yield of 1.40%. STZ last paid a dividend of $0.75 in the third quarter of 2020. Constellation Brands stock has paid investor dividends since 2015.

Constellation Brands stock currently sports an inflated price-earnings ratio of 38.56. However, the company’s forward price-earnings ratio is much more promising at 19.80. Constellation Brands also has $204.6 million in cash, which pales in comparison to the $11.6 billion the company has in debt.

From a fundamental point of view, the most intriguing part about investing in Constellations Brands stock lies in its revenue production history. The company has done well in 2020, maintaining its annual revenue at a comparable level to the previous year. Prior to 2020, STZ had demonstrated consistent growth, adding about $1 billion in sales since 2017. On the bottom line, the company has struggled to maintain the same level of profits from previous years. Over the past 12 months, STZ has produced just $55.7 million in net profit, which represents a small fraction of the $3.4 billion it ended its fiscal year with in 2019. Nonetheless, the company more than doubled its net income between 2017 and 2019.

The biggest red mark for STZ is $11.8 million in net losses the company ended its most recent fiscal year with. Overall, Constellation Brands stock will likely be a winner in the long run, taking the company’s revenue and net income growth over the past few years into account.

All major stock market indexes managed to log record closes yesterday after brushing off the dismal jobless claims update as Congress rushed to hammer out a $900 stimulus package before the end of the year. Outside of world of Wall Street, coronavirus cases are climbing faster than ever before and investors are clearly concerned once more about virus-related restrictions across the country negatively impacting parts of the economy, specifically the labor market.

The Dow Jones Industrial Average (DJI -30,303.37) increased 148.8 points on Thursday. The S&P 500 Index (SPX - 3,722.48) added 21.3 points for the day and the Nasdaq Composite (IXIC - 12,764.75) added 106.6 points yesterday. The Cboe Volatility Index (VIX - 21.93) lost 0.6 point during yesterday's trading session.

The stock market schedule finally slows down today. November's leading economic indicators will be reported, but that is all that is on the schedule for today. 

For your convenience, we have rounded up the companies slated to release earnings today, December 18:

Apogee Enterprises, Inc. (NASDAQ:APOG -- $32.13) designs and develops glass and metal products and services. Apogee Enterprises will report its third-quarter earnings before the bell today.

Darden Restaurants, Inc. (NYSE:DRI -- $118.62) owns and operates full-service restaurants. Darden Restaurants will report its second-quarter earnings of 2021 before the bell today.

Winnebago, Inc. (NYSE:WGO -- $59.54) manufactures and sells recreation vehicles and marine products. Winnebago will report its first-quarter earnings of 2021 before the bell today.

NIKE, Inc. (NYSE:NKE -- $140.50) designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories. NIKE will report its second-quarter earnings of 2021 after the market closes today.

Here is a quick recap of how Thursday's earnings calls played out:

Accenture plc (NYSE:ACN -- $247.45) provides strategy and consulting, interactive, and technology and operations services. Earnings per share rose 3.83% over the past year to $2.17, which beat the estimate of $2.05. Revenue of $11,762,000,000 higher by 3.55% from the same period last year, which beat the estimate of $11,360,000,000.

General Mills, Inc. (NYSE:GIS -- $58.92) manufactures and markets branded consumer foods. Earnings per share increased 11.58% year over year to $1.06, which beat the estimate of $0.97. Revenue of $4,719,000,000 rose by 6.74% year over year, which beat the estimate of $4,650,000,000.

Jabil, Inc. (NYSE:JBL -- $41.06) provides manufacturing services and solutions. Earnings per share increased 52.38% over the past year to $1.60, which beat the estimate of $1.27. Revenue of $7,833,000,000 rose by 4.36% year over year, which beat the estimate of $7,030,000,000.

Sanderson Farms, Inc. (NASDAQ:SAFM -- $141.09) produces, processes, markets, and distributes fresh, frozen, and prepared chicken products. Earnings per share rose 232.63% over the past year to $1.26, which beat the estimate of $0.12. Revenue of $940,023,000 higher by 3.70% year over year, which beat the estimate of $900,090,000.

Worthington Industries, Inc. (NYSE:WOR -- $52.53) is a metals manufacturing company. Earnings per share were up 37.68% year over year to $0.95, which beat the estimate of $0.68. Revenue of $731,092,000 declined by 11.67% year over year, which beat the estimate of $688,300,000.

FedEx Corporation (NYSE:FDX -- $288.81) provides transportation, e-commerce, and business services. Earnings per share rose 92.43% year over year to $4.83, which beat the estimate of $4.01. Revenue of $20,563,000,000 rose by 18.70% from the same period last year, which beat the estimate of $19,460,000,000.

Scholastic Corporation (NASDAQ:SCHL -- $26.55) publishes and distributes children's books. Earnings per share fell 44.17% year over year to $1.15, which missed the estimate of $1.38. Revenue of $406,200,000 declined by 31.98% year over year, which missed the estimate of $528,000,000.

Steelcase, Inc. (NYSE:SCS -- $13.66) manufactures and sells integrated furniture settings, user-centered technologies, and interior architectural products. Earnings per share fell 82.61% over the past year to $0.08, which beat the estimate of $0.03. Revenue of $617,500,000 declined by 35.35% year over year, which missed the estimate of $628,800,000.

Looking ahead to next week, the stock market will be relatively quiet in the days leading up to Christmas, though there will still be a handful of economic indicators for investors to evaluate heading into the final week of the year. The holiday-shortened week will feature core durable goods, personal income, core inflation, and new and existing home sales data -- all due before the market closes early on Thursday. In addition, traders can expect the weekly jobless claims update, as well as the consumer confidence and sentiment indexes. All economic dates listed here are tentative and subject to change.

The U.S. stock market will have a shortened schedule next week, with only three and a half trading days. On Thursday, December 24, the stock market hours will be 9:30 a.m. through 1:00 p.m. ET in observance of Christmas Eve. On Friday, December 25, the stock market will be closed in observance of Christmas.

Streaming giant Roku Inc (NASDAQ:ROKU) scored a record high of $352.12 out of the gate today, enjoying tailwinds after announcing the addition of HBO Max to its streaming platform. This prompted two price-target hikes from Benchmark and Stephens, to $4150 and $250 respectively. With the pandemic still raging on, it's no surprise that streaming platforms are among the chief stay-at-home stocks at the front of investors' minds. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, ROKU is worth keeping an eye on after flashing a historically reliable bullish signal.

ROKU's new peak comes amid historically low implied volatility (IV) -- a combination that has been bullish for the stock in the past. According to White's modeling, there have been two other instances in the past five years when the stock was trading within 2% of its 52-week high, while its Schaeffer's Volatility Index (SVI) sat in the 20th annual percentile or lower -- as is the case with ROKU's current SVI of 58.9%, which sits in the 10th percentile of its 12-month range.

The data shows that one month after that signal, the streaming giant was up 15%. From its current perch at $333.50, another move of similar magnitude would put the stock at another all-time high, around $383.53. ROKU is trading at more than five times the previously mentioned pre-pandemic lows, with the November consolidating bouncing off its 60-day moving average.

In the options pits, calls rule the roost amid limited absolute volume. Data from the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), shows that Roku stock's 10-day call/put volume ratio of 2.92 ranks in the 81st percentile of its annual range. This mean calls are being picked up at a much faster-than-usual clip.

The market will be relatively quiet in the days leading up to Christmas, though there will still be a handful of economic indicators for investors to evaluate heading into the end of the year. The holiday-shortened week will feature core durable goods, personal income, core inflation, and new and existing home sales data -- all due before the market closes early on Thursday. In addition, traders can expect the weekly jobless claims update, as well as the consumer confidence and sentiment indexes.

The week will be even slower in terms of earnings, with only a few significant names scheduled to report, including CarMax (KMX), Paychex (PAYX) and Cintas (CTAS). 

Below is a list of key market events scheduled for the upcoming week. All economic dates listed below are tentative and subject to change.

The week kicks off on Monday, Dec. 21, with Chicago Fed national activity data on tap.

On Tuesday, Dec. 22 investors will be looking ahead to a gross domestic product (GDP) revision, the latest consumer confidence index, and existing home sales data.

The pace picks up on Wednesday, Dec. 23, with core durable goods, personal income and core inflation data due out. Plus, new home sales data and the consumer sentiment index will be released.

On Thursday, Dec. 24, the market will close at 1 p.m. ET in observance of Christmas Eve. However, the latest round of jobless claims data is due, as well as durable and core capital goods orders.

Finally, Wall Street will be closed on Friday, Dec. 25, for the Christmas holiday. 

The shares of General Mills, Inc. (NYSE:GIS) are up 0.1% at $58.99 following a fiscal second-quarter earnings and revenue beat. The company cited strong pet food and baking product sales during the pandemic, and projected this demand trend to remain at similar levels going forward. 

On the shares, GIS has been middling since a sharp pullback from its four-year highs in early September. While the shares have been on the road to recovery, thanks in part to support at the 320-day moving average, the $62 level still looms large as a potential rejection area for the stock. Year-to-date, GIS sports an 11.2% lead. 

Analysts have remained mum on this earnings news, but a look back shows sentiment is mostly lukewarm. Just four brokerage firms call GIS a "strong buy," compared to eight "hold" or worse ratings. Meanwhile, the 12-month consensus price target of $62.42 is a 7.8% premium to current levels. 

Meanwhile, calls are outnumbering puts at roughly a four-to-one basis during the past two weeks, per data on the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 66% of readings from the past year, implying that these bullish bets have been picked up at a slightly quicker clip than usual. 

A look at today's trading shows 5,309 calls and 4,437 puts across the tape so far, which is nine times the intraday average, with put volume pacing for its top annual percentile. The most popular position is the weekly 12/18 60-strike call, followed by the January 2021 55-strike put. The popularity of the latter suggests these traders are expecting the underlying stock to drop back below the $55 mark by the time these contracts expire on Jan. 15 of the new year.