STZ Toasts to Record Highs After Earnings

In response, the options pits are seeing four times the usual volume

Deputy Editor
Jan 7, 2021 at 3:15 PM
facebook twitter linkedin

The shares of Constellation Brands, Inc. (NYSE:STZ) are up 2.8% at $230.07 at last check, after its upbeat fiscal third-quarter report, with the company reporting better-than-expected earnings. The beverage alcohol producer said business picked up in this quarter despite the pandemic, and forecasts a fiscal 2021 net beer sales growth of as much as 9%. Furthermore, Constellation noted that its board has authorized a $2 billion share repurchase program. 

On the charts, STZ hit new record levels earlier in the day, trading up as high as $240.76 before pulling back to its current gains. Now on track for its third-straight win, with yesterday's 3.1% pre-earnings pop surpassing pressure at the $220 level, the stock is up 21.1% year-over-year. 

STZ Jan 7

Analysts are leaning bullish on Constellation stock, with 10 of the 15 analysts in coverage at a "buy" or better rating. Meanwhile, the 12-month consensus price target of $230.55 is in line with current levels. 

Today's news has options traders chiming in at full force, with overall volume running at four times what's typically seen at this point. More specifically, 11,000 calls and 5,869 puts across the tape so far, with the new positions being opened at the most active option -- the weekly 1/8 240-strike call. 




These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!


Common mistakes options traders make


Special Offers from Schaeffer's Trading Partners