Molson Coors Stock Has Layers of Support in Place

Options are affordably priced at the moment

Mar 15, 2024 at 2:30 PM
facebook X logo linkedin


Subscribers to Schaeffer's Weekend Trader options recommendation service received this TAP commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

Molson Coors Beverage Co (NYSE:TAP) stock is breaking out from an ascending triangle, which is coincident with a level of high options volume and coincides with both its 50- and 200-day moving averages. Longer term, the shares have been moving higher since the brewing company’s better-than-expected earnings in mid-February.

 

TAP WT

Since December, short interest has risen 31%, now representing 6% of the stock’s available float. It would take six days for shorts to cover, at TAP’s average pace of trading. And with the shares at fresh six-month highs, bears may feel pressured to start buying back their bets.

An unwinding of pessimism amongst analysts could provide tailwinds as well. Of the 16 firms in coverage, only three carry a “strong buy” rating, with 12 a tepid “hold,” and one “strong sell.
Options are affordably priced at the moment, too. The stock's Schaeffer's Volatility Index (SVI) of 19% ranks in the 11th percentile of its annual range, meaning options traders are pricing in low volatility expectations. Our recommended call option has a leverage ratio of 13.7, and will double in a 7% rise in the underlying shares.

 

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