StockTwits Trending Alert: Trading recent interest in CONSTELLATION BRANDS $STZ

Quantchabot has detected a promising Bear Put Spread trade opportunity for CONSTELLATION BRANDS (STZ) for the 16-Jun-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

STZ was recently trading at $256.69 and has an implied volatility of 23.26% for this period. Based on an analysis of the options available for STZ expiring on 16-Jun-2023, there is a 28.02% likelihood that the underlying will close within the analyzed range of $221.49-$256.69 at expiration. In this scenario, the average linear return for the trade would be 95.20%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, CONSTELLATION BRANDS was recently trending, indicating that breaking news and/or market activity has significantly impacted sentiment toward the stock. This movement can be interpretted as a sign of more near-term price movement for the underlying.

Trade approach: The recent sentiment change in STZ on StockTwits appears to be significantly negative, indicating that the stock is likely to follow in that direction for investors trading on sentiment. As a result, a bearish strategy could prove effective if the sentiment ultimately turns out to drive trading.

Upside potential: Using this bearish strategy, the trade would be profitable if CONSTELLATION BRANDS closed at or below $256.90 on 16-Jun-2023. Based on our analysis, there is a 44.07% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.