Quantchabot has detected a new Bear Call Spread trade opportunity for CONSTELLATION BRANDS (STZ) for the 21-Mar-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
STZ was recently trading at $176.14 and has an implied volatility of 29.21% for this period. Based on an analysis of the options available for STZ expiring on 21-Mar-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $158.65-$176.13 at expiration. In this scenario, the average linear return for the trade would be 40.46%.
52 week low: CONSTELLATION BRANDS recently reached a new 52-week low at $166.02. STZ had traded in the range $176.51-$274.87 over the past year.
Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if STZ maintains its current direction and does not revert back to pricing on the bullish side of $176.14 on 21-Mar-2025. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bearish strategy, the trade would be profitable if CONSTELLATION BRANDS closes at or below $176.20 on 21-Mar-2025. Based on our risk-neutral analysis, there is a 50.15% 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.
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