STZ Pulls Back From Records After AB InBev Lawsuit

The equity has tacked on over 38% in nine months

Deputy Editor
Feb 16, 2021 at 10:32 AM
facebook X logo linkedin


The shares of beverage name Constellation Brands, Inc. (NYSE:STZ) are lower this morning, down 2.4% to trade at $235.44 following news that AB InBev (BUD) is suing the company over its use of the Corona brand name for its hard seltzer. According to AB InBev, a 2013 deal between the two stipulated that Constellation was not to use the name outside of beer products. 

On the charts, STZ nabbed a record closing high of $242.12 on Feb. 12. And while the security eclipsed this peak right out of the gate, notching yet another record high of $242.62, it quickly changed direction. The equity's 60-day moving average, which thwarted a bigger pullback attempt earlier this month, could provide some support should today's negative price action worsen. Longer term, the security is up 38.6% over the last nine months. 

Constellation stock's options pits have been overwhelmingly optimistic of late. In the past 10 days, 2.36 calls were picked up for every put at the International Securities Exchange (ISE), Cboe Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the 76th percentile of its annual range, implying that long calls have rarely been more popular in the last 12 months. 

Lastly, STZ options are relatively cheap at the moment. The stock's Schaeffer's Volatility Index (SVI) of 35% stands higher than just 17% of all other readings in its annual range, implying that options players are pricing in relatively low volatility expectations at the moment.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI