Monster Beverage Corporation (MNST) Higher on McDonald's Buzz

Monster Beverage Corporation (MNST) options are active on rumors it's being tested at some McDonald's Corporation (MCD) stores

by Mark Fightmaster

Published on Oct 20, 2015 at 11:23 AM
Updated on Jun 24, 2020 at 10:16 AM

According to industry buzz, Monster Beverage Corporation (NASDAQ:MNST) is being tested in some McDonald's Corporation (NYSE:MCD) stores. One Evercore ISI analyst said the opportunity could translate into more than $1 billion in incremental revenue. Shares of MNST are 5.2% higher at $139.53, and option traders are displaying a relatively rare penchant for calls over puts.

At last check, call volume is running 13 times the daily norm. Furthermore, call activity has tripled put volume so far, with the weekly 10/23 136- and 140-strike calls the most active.

The stock's 10-day put/call volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) checks in at 1.27, which is higher than 78% of the readings taken during the past 52 weeks. In other words, during the past two weeks, traders have bought to open MNST puts over calls at a faster-than-usual clip. If the stock's run higher prompts these pessimists to hit the exits, MNST could enjoy added tailwinds. 

Technically, Monster Beverage Corporation (NASDAQ:MNST) has performed well -- tacking on 28.8% year-to-date. In light of today's surge, the stock is on pace to end the week atop its 10-week moving average for the first time since mid-August, and could be aiming to retest record-high territory -- and extend its string of solid fourth quarters


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