Energy Drink Giant Rises on Pre-Earnings Praise

The company will report third-quarter earnings on November 5

Deputy Editor
Nov 3, 2020 at 3:13 PM
facebook X logo linkedin

The shares of Monster Beverage Corporation (NASDAQ:MNST) are up 1.3% at $78.93 at last check, after Morgan Stanley upgraded the stock to "overweight" from "equal weight," with an added price-target hike to $90 from $87. Along with confidence on MNST's outlook long-term, the analyst in coverage believes that beverage sales appear to be rebounding from their coronavirus lows, and that the company will have better-than-expected quarterly results to provide tailwinds. 

Monster Beverage is set to report earnings after the close on Nov. 5, and a look back at its past eight reports shows a mostly positive post-earnings response, with 75% of these next-day sessions ending higher. The security has averaged a post-earnings swing of 5.1%, regardless of direction, which is lower than the 9.8% the options market is pricing out for this time around. 

In a rare event, the options pits are buzzing after today's pre-earnings upgrade, with 3,580 calls across the tape so far -- seven times what's typically seen at this point. Most of this activity belongs to the weekly 11/13 86.50-strike call, where new positions are being opened. 

On the charts, MNST has fallen lower since its early-August bull gap. Today recovering its 100-day moving average, which it fell below for the first time since May. The equity is up 24% year-to-date.



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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI