Beverage Stock Surges as Berkshire Doubles Stake

STZ calls have been popular of late - and cheap

Emma Duncan

Managing Editor

May 16, 2025 at 9:52 AM

Shares of Constellation Brands Inc (NYSE:STZ) are up 3.4% at $197.18 at last glance, after Warren Buffett's Berkshire Hathaway (BRK.A) hiked its stake in the beverage company. Now Buffett carries around 12 million shares worth $2.2 billion -- double its previously reported holdings.

STZ has struggled to make any significant upward movement on the charts in 2025, testing the overhead $190 level upon multiple breakout attempts. Heading into today the equity sports a 13.7% year-to-date deficit.

Options traders have been circling calls on STZ of late. The stock's 10-day call/put volume ratio of 2.44 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than 80% of readings from the past year.

Meanwhile, data suggests it could be a good time for options traders to target short-term STZ options contracts. For starters, the security has a Schaeffer's Volatility Index (SVI) of 27%, which ranks in the low 18th annual percentile -- suggesting volatility expectations are unusually low right now.

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