Constellation Brands Options Show Potential Returns

Investors eye possible profits with Constellation Brands (STZ) options. With new contracts beginning to trade, opportunities arise for potential gains or losses based on stock price movement and market volatility.

Date: 08-01-2025

AI Rating: 6

Options Trading Signals for Investors

Constellation Brands Inc (STZ) has seen new options begin trading, particularly focusing on a put contract at the $215.00 strike and a call contract at the $220.00 strike. The put contract shows a bid of $4.30, offering a potential cost basis of $210.70, which provides a 2% discount to the current share price of $218.53. This could be an attractive option for investors considering a direct share purchase.

The 60% probability of the put contract expiring worthless indicates a moderate risk for investors, providing a potential return of 2.00% on the cash commitment, or an annualized 14.31%. Meanwhile, the call contract at the $220.00 strike, priced at $5.90, offers a net return of 3.37% (given the current stock price) if the stock is sold at the expiration date but also risks leaving potential gains on the table in an upward-moving market.

The underlying factors of trading at these strike prices highlight the broader market sentiment and investor strategies around STZ but does not provide specific details regarding Earnings Per Share (EPS), Revenue Growth, Net Income, or Profit Margins. The report mentions volatility metrics, reflecting a 25% in implied volatility compared to a 19% actual trailing twelve-month volatility. This information could impact how investors view the stock's risk and price movements in the short-term.

Stocks: STZ