Monster Beverage Corporation (MNST) Call Players Climb On Board

Monster Beverage Corp (NASDAQ:MNST) calls are trading at four times the average intraday pace

Jun 26, 2015 at 2:48 PM
facebook X logo linkedin


Monster Beverage Corp (NASDAQ:MNST) is up 1.6% today to trade at $138.38. While rumors are swirling that The Coca-Cola Co (NYSE:KO) -- which already owns a 17% stake in MNST -- could be interested in the energy drink issue, today's rise is most likely due to a price-target hike to $167 from $166 at Cowen and Company, territory yet to be traveled. Regardless, near-term option traders are rolling the dice on more upside, with calls crossing the tape at four times the average intraday pace.

Diving deeper, weekly calls are hot today, with buy-to-open activity detected at the 6/26 and 7/2 138 strikes. Meanwhile, longer-term traders are potentially purchasing new positions at the August 135 and 165 calls. By initiating the long calls, speculators expect MNST to settle north of the strikes at the respective expiration dates.

Widening the sentiment scope reveals traders have shown a preference for puts over calls among options slated to expire in three months or less. In fact, MNST's Schaeffer's put/call open interest ratio (SOIR) of 1.47 sits just 2 percentage points from a 52-week peak, meaning speculative players have rarely been as put-skewed as they are now.

In any event, those purchasing near-term options are in luck. MNST's Schaeffer's Volatility Index (SVI) of 22% sits lower than 99% of all similar readings taken in the past year. Simply stated, premium on the stock's short-term options is pricing in extremely low volatility expectations at the moment.

Outside of the options pits, sentiment among the brokerage bunch is lukewarm. More than 57% of analysts covering the shares maintain a "hold" recommendation, while the average 12-month price target of $149.50 stands at a 8% premium to current trading levels. Should Monster Beverage Corp (NASDAQ:MNST) extend its nearly 28% year-to-date lead, another round of bullish brokerage notes could be on the horizon.
 

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