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4 Trade Ideas For Constellation Brands: Bonus Idea

Published 09/03/2019, 07:39 AM
STZ
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Here is your Bonus Idea with links to the full Top Ten:

Constellation Brands Inc Class A (NYSE:STZ), started higher off of a December low. It paused through February and March and then continued to a top in April. It pulled back from there, finding support at the end of May the prior consolidation zone. A reversal higher met resistance at a lower high in July and pulled back. It found support at rising trend support and bounced. Now it is back at the prior resistance.

The RSI is holding just under the edge of the bullish zone with the MACD rising and positive. There is resistance at 205.30 and 207.50 then 213.50. Support lower comes at 202.80 and 197.25 then 189.70 and 185.70. Short interest is moderate at 5.4%. The stock pays a dividend with a 1.47% yield and started trading ex-dividend August 12th. The company is expected to report earnings next on October 2nd.

The weekly options expiring Friday show highest open interest at the 205 call and 182.50 put strikes. The September options chain has biggest open interest at the 200 call with size also at the 195 and 215 strikes. On the put side it is biggest at 200 and 187.50 then 180. The October 4 Expiry is the first to cover the earnings report and has notable open interest at the 210 call. The October monthly chain shows open interest focused at 175 and 180 on the put side and spread from 205 to 225 on the call side.

Constellation Brands (NYSE:STZ), Ticker: $STZ

STZ Daily Chart

Trade Idea 1: Buy the stock on a move over 205.30 with a stop at 201.30.

Trade Idea 2: Buy the stock on a move over 205.30 and add a September 200/187.50 Put Spread ($2.00) while selling the October 220 Call ($2.45).

Trade Idea 3: Buy the September/October 215 Call Calendar (95 cents) and sell the September 190 Put (90 cents).

Trade Idea 4: Buy the October 180/210/220 Call Spread Risk Reversal for $1.85.

Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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