This Is What Whales Are Betting On Constellation Brands

Investors with a lot of money to spend have taken a bullish stance on Constellation Brands STZ.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with STZ, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 12 uncommon options trades for Constellation Brands.

This isn't normal.

The overall sentiment of these big-money traders is split between 75% bullish and 25%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $106,507, and 10 are calls, for a total amount of $607,711.

Predicted Price Range

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $170.0 and $267.5 for Constellation Brands, spanning the last three months.

Volume & Open Interest Development

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Constellation Brands's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Constellation Brands's whale trades within a strike price range from $170.0 to $267.5 in the last 30 days.

Constellation Brands Option Activity Analysis: Last 30 Days

Biggest Options Spotted:

About Constellation Brands

Constellation Brands is the largest provider of alcoholic beverages across the beer, wine, and spirits categories in the us, generating 80% of revenue from Mexican beer imports under top-selling brands such as Modelo and Corona. The rest of the business includes some remaining wine and spirits brands, categories where the company continue to prune assets in recent years. With its exclusive rights tied to the Mexican beer brands effective only in the us, the firm has small revenue exposure to international markets. Constellation owns a 36% stake in no-moat Canopy Growth, a medicinal and recreational cannabis producer in Canada, and has a 50/50 joint venture with glass manufacturer Owens-Illinois in Mexico.

In light of the recent options history for Constellation Brands, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Current Position of Constellation Brands

• With a trading volume of 1,286,058, the price of STZ is up by 3.16%, reaching $258.28.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 90 days from now.

What Analysts Are Saying About Constellation Brands

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $309.8.

• An analyst from Roth MKM persists with their Buy rating on Constellation Brands, maintaining a target price of $303.
• Maintaining their stance, an analyst from BMO Capital continues to hold a Outperform rating for Constellation Brands, targeting a price of $315.
• Consistent in their evaluation, an analyst from UBS keeps a Buy rating on Constellation Brands with a target price of $320.
• An analyst from JP Morgan persists with their Overweight rating on Constellation Brands, maintaining a target price of $320.
• An analyst from JP Morgan persists with their Overweight rating on Constellation Brands, maintaining a target price of $291.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Constellation Brands, Benzinga Pro gives you real-time options trades alerts.