Smart Money Is Betting Big In STZ Options

Investors with significant funds have taken a bearish position in Constellation Brands STZ, a development that retail traders should be aware of.

This was brought to our attention today through our monitoring of publicly accessible options data at Benzinga. The exact nature of these investors remains a mystery, but such a major move in STZ usually indicates foreknowledge of upcoming events.

Today, Benzinga's options scanner identified 10 options transactions for Constellation Brands. This is an unusual occurrence. The sentiment among these large-scale traders is mixed, with 10% being bullish and 40% bearish. Of all the options we discovered, 9 are puts, valued at $495,886, and there was a single call, worth $49,284.

Projected Price Targets

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $175.0 and $240.0 for Constellation Brands, spanning the last three months.

Insights into Volume & Open Interest

In today's trading context, the average open interest for options of Constellation Brands stands at 214.25, with a total volume reaching 459.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Constellation Brands, situated within the strike price corridor from $175.0 to $240.0, throughout the last 30 days.

Constellation Brands Option Volume And Open Interest Over 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 82% 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 little revenue exposure to international markets. Constellation owns a 26% 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.

After a thorough review of the options trading surrounding Constellation Brands, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Where Is Constellation Brands Standing Right Now?

• With a trading volume of 486,301, the price of STZ is down by -0.99%, reaching $167.33.
• Current RSI values indicate that the stock is may be approaching oversold.
• Next earnings report is scheduled for 59 days from now.

Professional Analyst Ratings for Constellation Brands

5 market experts have recently issued ratings for this stock, with a consensus target price of $215.8.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * An analyst from Jefferies has revised its rating downward to Hold, adjusting the price target to $201. * An analyst from JP Morgan downgraded its action to Neutral with a price target of $203. * An analyst from Piper Sandler has decided to maintain their Overweight rating on Constellation Brands, which currently sits at a price target of $245. * An analyst from Needham downgraded its action to Buy with a price target of $240. * Maintaining their stance, an analyst from Truist Securities continues to hold a Hold rating for Constellation Brands, targeting a price of $190.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Constellation Brands options trades with real-time alerts from Benzinga Pro.