Options Trading Insights for Constellation Brands Inc. (STZ)
New Options Available
Investors observing Constellation Brands Inc. (STZ) may notice fresh options that are now available with an expiration date of August 8. Our analysis, utilizing a YieldBoost formula, has identified intriguing put and call contracts for STZ within the new August 8 options chain.
Current Put Contract Insights
One noteworthy insight is related to the put contract at a strike price of $160.00, which currently has a bid of $4.60. Should an investor opt to sell this put contract, they would be agreeing to buy the stock at $160.00 while also collecting a premium. This effectively lowers the cost basis of the shares to $155.40, assuming no broker commissions are included. For those considering acquiring shares of STZ, this option presents a compelling alternative to the current market price of approximately $160.87 per share.
Since the $160.00 strike represents roughly a 1% discount to today’s trading price, there exists a possibility that the put contract may expire worthless. Analytical data suggests there is about a 55% chance of this occurring. Over time, our platform will monitor these probabilities, providing updates on how they may fluctuate.
Call Contract Overview
Shifting focus to the call contracts, one at a $165.00 strike price currently has a bid set at $4.10. If an investor were to purchase shares of STZ at the current price of $160.87 and subsequently sell this call as a “covered call,” they would agree to sell the stock for $165.00. This combination of selling the call and receiving the premium from the contract could yield a total return of 5.12% if the stock is called away at the expiration date. However, potential upside beyond this price remains a consideration, making it crucial to analyze historical trading data and the company’s fundamentals.
Similar to the put contract, the $165.00 call represents an approximate 3% increase over the current trading price, which means it, too, could expire worthless. Should this happen, the investor retains both the shares and the premium collected. Current analytics indicate there is a 55% chance of this scenario. As with the put options, we will continue to provide data insights regarding these probabilities and the trading history connected to this call contract.
Volatility Considerations
In terms of volatility, the put contract reflects an implied volatility of 33%, while the call contract shows an implied volatility of 35%. For a deeper analysis of actual volatility, over the last 250 trading days, we calculate a trailing twelve-month volatility of 31% based on closing values as well as the present stock price of $160.87.
For more insights and analysis related to various put and call options worth exploring, we invite you to visit StockOptionsChannel.com.
This overview of options trading for Constellation Brands Inc. aims to provide potential investors a clearer understanding of the available options and their possible implications. Keep an eye on market developments for updated insights and strategies.
