NEW DIRECTIONAL CALL PLAYS
Constellation Brands - STZ - close: 60.95 change: +1.30
Stop Loss: 58.90
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below
Why We Like It:
STZ is in the consumer goods sector. The company manufacturers a number of wines and liquors. The company recently reported earnings in early October and management raised their guidance. This news helped push shares to new all-time highs. Now, after a brief market-inspired pullback, traders are buying the dip near short-term support. We want to buy this bounce.
Today's high was $60.98. I am suggesting a trigger to buy calls at $61.10. If triggered our target is $67.50 but we may end up exiting near $65.00, which could be potential round-number resistance.
Trigger @ 61.10
- Suggested Positions -
Buy the NOV $62.50 call (STZ1316k62.5) current ask $1.35
Entry on October -- at $---.--
Average Daily Volume = 1.9 million
Listed on October 10, 2013