Constellation Brands Inc. (STZ): Synthetic Long Working 04.07.13

Apr. 07, 2013 3:19 PM ETBUD, STZ
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Invest. Manage risk. Communicate. Educate yourself. Make profits. . Visit Hello, My name is Todd Johnson. I’m a family man, sports fiend, health nut, technology buff, long-time stock investor, and a very lucky mountain climber, all of which has shaped my philosophy as a professional investor for the last 30 years. As my interests might suggest, I am always looking for the upside while striving to minimize risks. My new passion, which I have realized through project, is helping other investors learn more about investing; investing in stocks and other assets that are subject to wide price swings can actually enhance their returns when the right investment strategy is applied. To that end, I read company 10k and 10q statements so they can skip them. I compile and analyze the market research that isn’t always at their fingertips. And I don’t make any investment recommendation without committing my own funds first, which is the purest form of accountability.


Put on a synthetic long: short April $47.50 puts and long April $50 calls. Should be working on Monday: $STZ shares at over $49.3 after hours on 04.05.13.

Department of Justice gave, per WSJ 04.05.13 evening, approval of the Constellation Brands acceptance of marketing/distribution of Corona/Modelo in the U.S.

BUD takes commanding lead, however, in the beer market. This is great news for $STZ shareholders. Corona is a growing brand in the growing Hispanic U.S. population.


Disclosure: I am long STZ, BUD.

Additional disclosure: synthetic longs in STZ

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